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State Socialism 

After the War 



State Socialism 

After the War 



An Exposition of Complete State 

Socialism 
What It Is : How It Would Work 

By 
THOMAS J. HUGHES 




PHILADELPHIA 

GEORGE W. JACOBS & COMPANY 

PUBLISHERS 



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Cdpfnght, i^i,i6, by 

George W. Jacobs & Company 

Published September^ igi6 



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All rights reserved 
Printed in U. S. A. 



OCT -5 1916 



Foreword 

Since the beginning of the great world 
war in 1914, the opinion has been fre- 
quently expressed in the public prints and 
otherwise that this greatest of wars marks 
the beginning of a new era in the history of 
the world. There is to be seen in some of 
the leading papers and magazines of the day 
such expressions as, " vast changes pending 
throughout the world," " the greatest turn- 
ing point in human history during the last 
twenty centuries," " the end of the age," and 
other similar expressions. 

One writer speaks of it as "a crises of 
world evolution ushering in a better world 
for posterity," another as " marking the end 
of the old and the beginning of a new era." 
An English statesman says that at the end 
there will be a new Europe. A German- 
American writer thinks that some of the 
present European dynasties will be shorn 



6 FOREWORD 



of their power and that the common people 
will rise to their own. A well-known Amer- 
ican statesman says that it means the great- 
est impulse for Socialism that history re- 
cords, while the German Socialists announce 
that they will renew their efforts with in- 
creased energy and determination at its close. 
For a number of years there has been an 
increasing agitation and dissatisfaction con- 
cerning social and economic conditions in 
the principal countries of the world, not 
only upon the part of Socialists, but of 
others who do not so class themselves. For 
two or more years preceding the war David 
Lloyd George was proposing in England the 
idea of government ownership of many public 
utilities, even of the coal mines. These sug- 
gestions have already borne fruit in what is 
known as "The Commandeering Bill,'^ a 
very drastic and highly socialistic measure, 
passed by Parliament in March, 1915, upon 
the insistence of Lloyd George. This law, 
as one writer puts it, gives the government 
absolute power to take over and conduct the 



FOREWORD 



whole or any part of the industry of Great 
Britain. 

The newspapers were swift to see the pro- 
found change which this law wrought in 
British conditions. The Daily Express as- 
serted that the new bill was State Socialism, 
while an American gentleman, who had re- 
sided in England five years and was a close 
observer of conditions, said that, as one of 
the results of the war, England was sure to 
enter into a definite movement toward gov- 
ernment ownership and State Socialism. It 
will thus be seen that the entering wedge of 
a new order has already been inserted in the 
old system. What the new order is to be is 
a matter of conjecture. But inasmuch as 
England is a Christian nation whose spir- 
itual life has been deeply quickened by the 
experiences of this war, it may be expected 
that she will look to the principles of Chris- 
tianity, if it possesses any applicable to the 
subject, in her program of government 
ownership and State Socialism. 

In this connection it is interesting to note 



8 FOREWORD 



that students of prophecy are claiming that 
certain well-known prophecies are being ful- 
filled. And there certainly is some basis for 
the contention that the prophetic words of 
Christ, of nation rising against nation, and 
kingdom against kingdom, with famines and 
earthquakes in divers places, have come true. 

A great world war of nation against na- 
tion was to be characteristic of the approach- 
ing end of the world, or, as others trans- 
late, the end of the age. A new age, or era, 
was then to begin ; or rather, to become fully 
developed and established, for all the ele- 
ments of the new era are now present, but 
only partially established and developed. 
What this new era is to be is fully and com- 
pletely described by Jesus in his description 
of what he designated as " the kingdom of 
heaven." This was his way of speaking of 
a higher and superior civilization, a new age, 
era, or regime, which was to be established 
upon earth following a great world war 
which now appears to have taken place. 

While the new age, according to the 



FOREWORD 



biblical description, is to be one of high 
moral and spiritual attainment, there is also 
to be a great social and economic advance- 
ment. There is to be a better system of 
property tenure, a different basis of distrib- 
uting the means of subsistence between the 
rich and the poor, and a different system of 
wages. It is with the social and economic 
side of the new era, exclusively, that this 
work has to do, and whatever is herein set 
forth, it is maintained, has a sound scrip- 
tural basis. 

There are three fundamental principles 
underlying the economic side of the new era 
as found in the teachings of Christ and the 
Apostles' example. These principles are : — a 
system of property tenure according to abil- 
ity, or as ability is proved by earning capac- 
ity, according to earnings ; a distribution of 
the means of subsistence according to needs ; 
and the same or an equal wage. In the fol- 
lowing pages the reader will find a descrip- 
tion of a new economic system based upon 
these principles. We have, then, in the 



10 FOREWORD 



teachings of Jesus, the foundation principles 
of a new and more beneficent economic or- 
der, and which in modern parlance is noth- 
ing more or less than State Socialism. It 
might be interesting at the present time to 
examine this new order, which is already be- 
ginning in the moral, spiritual, and economic 
changes that are now taking place in the dif- 
ferent countries at war. 

Many Christians have but little compre- 
hension of the social scheme of Jesus as a 
whole, though the words by which it is set 
forth are almost as familiar as those of the 
Lord's prayer. Others have heretofore re- 
garded it as visionary, impracticable, unsuited 
to our complex and diversified modern life, 
and something to take place in the distant 
future. But it is our complex modern life, 
especially the wonderful development in re- 
cent years of what is known as modern busi- 
ness methods, that has made this scheme 
possible and practicable, and brought it near. 

The most natural and easy method of pre- 
senting the subject has been first to give a 



FOREWORD 11 



complete description of the new economic 
order, and then the scriptural passages upon 
which it is based. Hence, in chapters one to 
nineteen, the reader will find a new system 
of land tenure described, a new compulsory 
occupational law, a system of awards to take 
the place of inheritance, and a new system 
of wages. In order to give an adequate de- 
scription of the new order and to show its 
adaptability to various phases of diversified 
modern life, it is necessary to enter into con- 
siderable detail, such as Repairs and Main- 
tenance of Properties, Cost to the Citizen 
and to the State, Provisions for Widows and 
Orphans, Retirement Privileges, Public and 
Private Improvements, etc., which it is 
hoped the reader will not find too lengthy. 
In the nineteenth and twentieth chapters the 
scriptural foundation of the new order is 
stated and explained, and in the concluding 
chapters a description is given of modern busi- 
ness methods, showing their growth, expan- 
sion and adaptability to the new social order. 

T. J. H. 





Contents 




CHAPTER 
I. 


The New Era and the European 
War 


PAGE 

15 


II. 


The Opportunity in Africa . 


31 


III. 


Colonial Expansion 


52 


IV. 


A New System of Land Tenure . 


68 


V. 


The Housing System as Applied 





to City Properties ... 81 

VI. The Housing System as Applied 

TO Farm Properties ... 98 

VII. A New System of Wages . . 113 

VIII. Repairs and Maintenance of 

Properties 122 

IX. Annual Receipts of the Citizen 

AS Trustee of the State . .127 

X. Receipts and Costs by Monthly 

Periods 134 

XL Incomes in Excess of One Thou- 
sand Dollars Per Year, and 
Capital for Business Purposes 139 

XII. Distinction Between Single and 

Married Persons . . . 148 

XIII. Retirement Benefits and Provi- 

sions FOR Widows and Orphans 156 

XIV. A Concrete Example and Illus- 

tration 164 



14 



CONTENTS 



Pkivate Improve- 

OCCUPA- 



XV. Public and 

MENTS 

XVI. A New Compulsory 

TioNAL Law .... 

XVII. Means of Ascertaining the 
Number of Labor Hours 

XVIIL Awards. ..... 

XIX. Change of Eesidence . 

XX. The Kingdom of Heaven and 
the New Era .... 

XXI. The Teachings of Christ and 
THE Apostles' Example . 

XXII. Modern Business Methods and 
THE New Order 

XXIII. Enlarged Use of Modern 

Methods 266 

XXIV. The Individual Business Man 

AND THE New Era . . . 275 

XXV. The Farmer and the New Era . 296 

XXVI. Modern Business Methods and 

Agricultural Occupations . 310 

XXVII. Examples of Business Trans- 
actions 320 

XXVIII. The System not Cumbersome, 

NOR Expensive .... 331 
XXIX. Changes Necessary for the Be- 
ginning OF THE New Order . 337 



176 

185 

197 
215 
227 

232 

246 

257 



CHAPTER I 

THE NEW EEA AND THE EUROPEAN WAR 

The movement demanding the curtail- 
ment of the immense armament expendi- 
tures of the leading European nations made 
but little progress when the great European 
war of 1914 broke forth. Bursting suddenly 
upon the world, and apparently without 
justifiable cause, it seemed that this greatest 
of all wars could have been easily avoided. 
Many reasons and excuses have been given 
as to its causes, such as commercial jealousy, 
race antipathies, and territorial ambitions. 
But the deep, underlying cause was the spirit 
of militarism, the attempt to maintain the 
balance of power and rule the world by force 
of arms, which is contrary to the divine 
plan and the higher order of civilization 
which is to be established upon the earth. 
And it now seems that this stupendous con- 



16 STATE SOCIALISM 

flict, with all its horror and destruction, was 
inevitable and apparently necessary in order 
to exhaust and destroy the spirit of mili- 
tarism, and thereby bring about an era of 
universal and lasting peace. 

Though this most desirable of all objec- 
tives was not contemplated at the beginning, 
it was but the natural result of this, as it 
has been of other great wars. There is no 
doubt but that the experience of the Civil 
War, which was the greatest the world had 
known up to that time, is largely account- 
able for the pacific tendency in America. 
One of the most successful Union generals 
said, " War is hell." If to the victor war is 
hell, to the defeated it must be worse than 
hell. In order to destroy militarism and 
the desire for war, only let there be enough 
of it. And the longer the war and the more 
nations engaged, the more complete its de- 
struction and greater the assurance of uni- 
versal and lasting peace. At least at its 
close, the prospect of this seemed to be the 
one good result of the great European war. 



THE NEW ERA 17 

A cessation of hostilities was finally 
brought about by the intermediations of the 
neutral powers. It was then that the great 
question, After the War, What? loomed large 
upon the horizon. The war had resulted in 
a great unrest among the people of all 
European countries. There was an under- 
current of sentiment that a new era was 
dawning, and that vast changes were pend- 
ing throughout the world. In fact, the war 
had not proceeded a month when thinking 
men of different countries, taking a philo- 
sophical view of the matter, began to feel 
and to realize that this greatest of wars was 
not merely a war, but a great climax in the 
history of the world ; that it marked the end 
of the old order of things, and would be the 
turning point for a new and grander dis- 
pensation for the human race. 

Among the many opinions expressed was 
that of Lord Roseberry who said that old 
Europe was disappearing, never to reappear 
again in its present shape ; of Viscount 
Haldane, then Lord Chancellor of Great 



18 STATE SOCIALISM 

Britain, who said that a great democratic 
and moral advance would result from the 
war. Also that of Woodrow Wilson, then 
President of the United States, who declared 
that great spiritual forces would assert them- 
selves at the end of the war to enlighten the 
judgment and steady the spirit of mankind. 
That great moral and spiritual changes were 
taking place was conceded by all careful 
observers. The advanced position taken by 
the different governments regarding the use 
of intoxicants, and the deep religious waves 
which swept over the various nations during 
the war, was evidence of this. And in other 
respects, it was felt that this, the greatest of 
all wars, could not be without great and far- 
reaching results. Other wars had not been 
without great results, — results unforeseen and 
unanticipated at the beginning of hostilities. 
The American Revolution had no other ob- 
ject at first than the resistance of what was 
considered an unjust tax. It resulted in the 
independence of the Colonies and a new era 
of political freedom and democracy. Like- 



THE NEW ERA 19 

wise, it was generally realized that this war 
was the beginning of a new era of social and 
democratic advance in which all the people 
would be lifted to a higher plane. 

Furthermore, it was a serious question 
with biblical students as to whether this war 
was to be identified with that described in the 
gospels, which was to indicate the approach- 
ing end of what is known as the present or 
apostolic age, and the beginning of a higher 
and more beneficent dispensation. Burst- 
ing suddenly upon the nations and spreading 
like a mighty conflagration until, including 
the European countries actually engaged to- 
gether with their colonies and dependencies, 
it held within its grasp the larger part of the 
world, the scriptural prophecy seemed to be 
fulfilled : " And ye shall hear of wars and 
rumors of wars : see that ye be not troubled : 
for these things must needs come to pass : 
but the end is not yet. For nation shall rise 
against nation, and kingdom against king- 
dom : and there shall be famines and earth- 
quakes in divers places." These were the 



20 STATE SOCIALISM 

words of Christ Himself. And if there 
ever has been a time since the utterance 
of this prophecy in which nation rose 
against nation, and kingdom against king- 
dom, with famines and earthquakes in 
divers places, that time seemed to be during 
the great war just closed. 

While the Lord Chancellor of Great Brit- 
ain and the President of the United States 
were taking these long sighted, philosoph- 
ical views of the outcome, and students of 
prophecy were highly expectant as to the 
dawning of a new era, conditions in England 
and other countries at war indicated that 
vast changes were actually beginning to take 
place. The ukase of the Czar of Russia pro- 
hibiting the use of intoxicants was as great a 
moral revolution, the result of a single act, 
as the world had ever witnessed. That this 
great reform was to be continued after the 
war was amply evidenced by the strong pub- 
lic opinion in its favor on the part of the 
Russian people. There was also evidence of 
a political reformation taking place in Rus- 



THE NEW ERA 21 

sia during the war. There were indications 
that greater political rights and privileges 
would be granted the people, with the pros- 
pect of local self-government in a " United 
States of Russia," promised by the Czar. 

In Germany, the strict censorship pre- 
vented the outside world from obtaining 
knowledge as to any internal changes. But 
it can be assured that, in the midst of their 
many victories, a large part of the people 
grew tired of the war, and a deep though 
silent peace sentiment developed which was 
bound to mean much to the rest of the world 
in future years. France and Belgium were 
too deeply afflicted by the presence of hos- 
tile armies upon their soil to look much to 
the future. France, especially, was greatly 
sobered and made serious. Her religious life 
was greatly quickened, thus preparing her 
for the higher and more beneficent order 
which was to arise out of her affliction. 

But it was in England that many indica- 
tions of vast changes taking place were to be 
found. In contrast to the solidarity and con- 



22 STATE SOCIALISM 

tentment with economic conditions in Ger- 
many and France toward the close of the 
first year of the war, there was much discon- 
tent with economic conditions and much 
strife and bitter animosity in the labor and 
industrial situation across the Channel. 
"Popular discontent," said ex-Senator Al- 
bert J. Beverage, who made a careful investi- 
gation of conditions in England at this time, 
" raised its many headed visage in multitudes 
of places throughout the United Kingdom. 
The workers on the Clyde had struck. The 
dock laborers at Liverpool had either stopped 
work or threatened to do so. Here, there 
and yonder, the protest of the toiler against 
conditions flamed up like a fire creeping be- 
neath forest leaves and refusing to be extin- 
guished. Bitter animosity arose. 

" In an acrimonious article in the London 
Times, the Clyde men were dubbed 'Shipyard 
Shirkers ' : ' the shame of Sunderland is its 
large body of shirkers. . . . It is a com- 
mon thing for men to be away three days 
each week. . . . Absenteeism is not 



THE NEW ERA 23 

wholly or indeed largely due to intemper- 
ance. The shirkers who parade the streets 
are a remarkably sober-looking body of 
men.'"i 

The laboring men were accused by the 
government of intoxication and by the Times 
and other London papers of idleness, intoxi- 
cation, and inefficiency. On the other hand 
the British workingmen, of whom it was 
claimed the majority were sober and indus- 
trious, bitterly resented these attacks. ** The 
Labor Journals saw in these assaults upon the 
workingman an effort to break down the 
whole trade-union system and exploitation 
of labor by the capitalistic classes. ' This,' 
declared Justice, an organ of the Social De- 
mocracy, * is the reason why Cabinet Ministers, 
shareholders and capitalistic pressmen have 
commenced this campaign of calumny 
against a body of men who, but a short time 
before, they were united in praising. First 



^ The above and following facts and quotations are taken from 
an article by Albert J. Beverage published in the American Be- 
view of EeviewSf July, 1915. 



24 STATE SOCIALISM 

it was the docker who was lazy, now it is the 
engineer — whose turn will be next ? Not the 
shareholder, who calmly pockets his en- 
hanced dividends, and then proceeds to abuse 
the men who made the dividends/ 

" Another signed article in this labor paper 
concerning the strike of the engineers on the 
Clyde said: * We find the engineering shops 
seething with discontent, and it is difficult to 
say what may yet be the outcome/ 

" So grave did the economic strife in Great 
Britain finally become, and so acutely was 
the government embarrassed in conducting 
the war because of shortage of material and 
equipment, that toward the middle of March 
the most drastic and autocratic law ever 
passed by any legislative body in British his- 
tory was enacted. Broadly speaking, this 
law, *The Commandeering Bill,* gave the 
government absolute power to take over and 
conduct the whole or any part of the industry 
of Great Britain. 

'' The newspapers were swift to see and 
frank to state the profound change which 



THE NEW ERA 25 

this law wrought in British conditions, and 
justified it only on the ground of deadly 
emergency. The Daily Mail said that the 
law established * a sort of industrial dictator- 
ship.' The Daily Express asserted that ^ The 
new bill is, of course, State Socialism. That 
must be accepted.' 

'* At a large labor meeting personally at- 
tended, following the first debate in Parlia- 
ment upon the Commandeering Bill, bitter 
denunciations of the government were heard. 
The manufacturers, the shipowners, the deal- 
ers in life's necessities were, declared the 
speakers, using the war to squeeze blood- 
money from the people by an unconscionable 
raising of prices. 

" At this particular labor meeting not one 
warm word was uttered in support of the 
war. But all demanded that the principles 
of the Commandeering Bill should be ap- 
plied to food and fuel in order to relieve the 
distress of the people. * If the government,' 
said they, * is to take over factories and 
docks, and compel labor to toil immeasur- 



26 STATE SOCIALISM 

ably in order that munitions of war shall be 
furnished, let the government also take over 
foodstuffs and compel dealers and carriers to 
sell reasonably for provisioning the poor.' 

" Leaflets and pamphlets were distributed, 
filled with astounding figures showing the 
rise of prices and demanding government 
intervention. 

" * Oh I they amount to nothing,' said one 
of the most powerful men in England when 
told of this labor meeting. On the contrary : 
* But you noticed that the chairman was a 
member of Parliament, that the representa- 
tive of the British cooperative stores was one 
of the speakers, and that all of them were 
trusted representatives of the working 
classes,* remarked a studious observer when 
told of this estimate of the insignificance of 
this labor demonstration. 

" Compared with the contentment with 
economic conditions found in Germany and 
France, what was seen, heard, and read of 
the labor and industrial situation across the 
Channel startled and surprised . . ." 



THE NEW ERA 27 

Another American, Mr. Reginald Wright 
KaufFman, who has resided in England five 
years, who has studied the national life, and 
who has the advantage of an acquaintance 
more or less intimate of each of the three 
social grades, in speaking of the effects of 
the Commandeering Bill, said : 

"This means just one thing; it means 
that the cause of the labor unions, once 
stronger in England than anywhere else in 
the world, had been put back a quarter of a 
century. And it may mean more ; two 
years ago, Lloyd George was playing with 
the idea of the government ownership of 
many public utilities, even the coal mines — 
the tendency may well end in wide-spread 
government ownership ; it may well end in 
State Socialism.'* 

In a very interesting and highly illumi- 
nating article published in the Christian 
Herald J entitled, " England — Afterwards," 
and in which he asserts that he will confine 
himself to such matters only as are already 
evident, Mr. Kauffman says further : 



28 STATE SOCIALISM 

" One more change can be prophesied 
with certainty, and that a great one ; the 
women will be given the ballot. What they 
could not gain by violence, by years of 
propaganda, by peaceful politics, they have 
gained by their conduct in this war. There 
can be no doubt upon the subject. I have 
talked with Englishmen of influence among 
constituents of every shade of political be- 
lief, and the verdict is everywhere the same. 

" These things then are relatively certain, 
whoever wins the war or loses it, for England 
has awakened to her own internal condition. 
There will be new legislation upon the sub- 
ject of illegitimacy ; there will be sweeping 
changes in class distinctions ; there will be a 
larger standing army, — perhaps even mili- 
tarism ; there will be a strong tendency 
toward prohibition ; there will be at least a 
temporary decline of the powers of the trade 
unions and a definite movement toward 
State Socialism ; there will be admission of 
woman to the use of the ballot. 

" How much of this is good and how much 



THE NEW ERA 29 

bad, I am not here trying to determine ; but 
I have shown, I think, that so much as is 
sure to occur inside of England is of con- 
siderably more importance to her, and per- 
haps inferentially to the world at large, than 
any changes of the map of Europe/' 

Englishmen, too, were equally awake to 
the coming changes. A few months later, 
after the Commandeering Bill had been put 
into operation. Lord NorthclifFe, at the head 
of the greatest news gathering force in Eng- 
land, and in a position to sense the trend of 
affairs, said that by the end of the war Eng- 
land would have State Socialism. " Before 
the beginning of next year," said he, " my 
income tax will be $2.50 on every $5.00 of 
income. In my opinion this tax will never 
be less even after the war. On the other 
hand, the working classes are receiving 
higher wages than they have ever received 
before. In my opinion these wages will 
never be lower. The rich are going to be 
poorer and the poor richer, and by the end 
of the war England will have a species of 



30 STATE SOCIALISM 

State Socialism. We are reconciled to and 
have accepted these conditions.'' 

He was of the opinion that there would 
also be a social revolution in the United 
States. " America will have its conflicts 
also," said he. " It will be an internal 
reflex action of the great changes taking 
place here." 

But a complete system of State Socialism 
would, for the time being only, require an 
income tax of 50% from men of wealth. 
For the higher wages already being received 
by the working classes would lessen its cost 
and the tremendous war debts would revert 
to the State, the same as all other kinds of 
property, and if not subject to award would 
in time disappear. The entire income tax 
could then be devoted to the purposes of 
State Socialism which would not require an 
income tax of more than 20% or 25% at the 
utmost, which would be all the taxes for all 
purposes. 



CHAPTER II 
THE OPPOETUNITY IN AFEICA 

The industrial situation became still more 
acute during July, 1915, when more than 
150,000 miners went on a strike in the 
South Wales coal fields. An Associated 
Press cablegram at the time said that the 
situation thus created was regarded as alarm- 
ing : '* So far there has been no violence. 
The men, however, display a stubborn deter- 
mination to get what they want — higher 
wages — and not to work until they get it, no 
matter what danger may menace the nation 
as a result. 

" But it is not the strike, threatening 
though it is at such a time to the welfare 
of the country, that is viewed with most 
alarm. It is the significance which must be 
attached to such action by an immense body 
of men employed in producing what is the 



32 STATE SOCIALISM 

primary requirement of all munitions — the 
means to make motive power. 

" They have struck in the face of the 
government's declaration that strikes will 
not be tolerated, undermining, as they do, 
the rapid manufacture of war implements. 
By their conduct they have displayed perfect 
contempt for the measure of Lloyd George 
provided against such a contingency, that 
all strikers are subject to a fine of $15 a day, 
in default of which they may be imprisoned. 

" The South Wales strike is a serious blow 
to the government itself and one which may 
lead to more political disquiet. . . . The 
strike has been forced by the men of the 
Aberdale valley, who are strong Syndicalists, 
and have declared that the present was a 
good time to force the government to take 
over the mines. This policy has been advo- 
cated by the Independent Labor party, which 
is more extreme than the regular Labor 
party, and one of the leaders of which is 
J. Keir Hardie, whose parliamentary con- 
stituency includes the Aberdale valley.*' 



THE OPPORTUNITY IN AFRICA 33 

As the war progressed, the laboring man 
seized every opportunity to enter his solemn 
protest against economic conditions, to make 
known his dissatisfaction and to assert his 
unwillingness to serve the government in 
her time of need. In January, 1916, when 
the conscription bill was before Parliament, 
the National Railwaymen's Union, one of 
the strongest labor organizations in Great 
Britain, defied the government to pass the 
conscription bill. 

" In the most drastic resolution yet adopted 
by any labor body," said the Associated dis- 
patches, ** the executive committee of the 
railwaymen declared their organization 
would resist conscription to the last.'^ They 
hinted at an immediate strike of all railway 
workers in Great Britain if the bill would 
pass Parliament. 

** ^ Unless the government is prepared to 
confiscate the wealth of the privileged classes 
for the more successful prosecution of the 
war,' the resolution read, ' the railway 
workers will resist to the uttermost the con- 



34 STATE SOCIALISM 

fiscation of men, whose only wealth is their 
labor power.' " 

'' We do not trust the union leaders/' 
shouted Lloyd George's Christmas audience 
in Glasgow. ''Whom do you trust?" he 
asked. The answer was swift. Several 
voices gave it : '' Nobody." 

Toward this climax the British labor 
situation had been working for years. The 
British workingman had seen reform after 
reform started in his behalf only to end in 
disappointment by the reformer turning in 
other directions or to his own selfish interests. 
Time after time he had seen the government 
forced into a corner by the pressure for the 
betterment of his condition, and then wiggle 
out, having granted only a small fraction of 
what was needed. 

The attitude of '' trust nobody " was the 
result of a long continued dissatisfaction 
upon the part of the British workingman 
with his economic status, brought to an 
acute stage by war conditions. It had much 
to do with his attitude toward the govern- 



THE OPPORTUNITY IN AFRICA 35 

ment during the prosecution of the war, and 
explained his suUenness, defiance, and re- 
fusal to serve his country when one should 
have looked for a high order of patriotic 
action. But no other attitude could have 
been expected. No country can have the 
full, enthusiastic and patriotic support of its 
citizens, so necessary for the successful pros- 
ecution of any war, with great discontent 
and dissatisfaction over economic conditions 
among a large part of its population. For a 
nation to be successful in war, as well as in 
the pursuits of peace and in its conquest for 
world trade, there must be no dissatisfaction 
or discontent with economic conditions. 
There must be no under-paid, under-fed class 
of inefficients. There must be no lower 
classes struggling for a bare existence. Every 
citizen must be well paid, well fed, well 
trained and educated, and supplied with 
sufficient of the necessities of life to make 
him at all times efficient. There must be do 
other country better than his country ; no 
place where more is done for the welfare of 



36 STATE SOCIALISM 

the citizen. It was a final realization of 
this truth that caused England to take 
drastic measures to better the condition of 
the lower classes. 

The strike of the South Wales coal fields 
was settled by the government persuading 
the mine owners to grant an increase of 
wages, and the conscription bill was passed 
in spite of the resolution of the railway 
workers, and of over 800,000 miners, and 
1,577,000 votes at the Trades Union Confer- 
ence. But these protests could not be ig- 
nored and the bill was amended before passed 
with many exceptions which greatly im- 
paired its efficiency. 

But a mere increase of wages was not 
sufficient to pacify the British workingman 
and hold him in check during the war. 
Before the Commandeering Bill could be put 
into successful operation, it was necessary for 
Lloyd George to make a strong appeal to 
their patriotism. In a speech in the House 
of Commons he declared that the success of 
the Allies in the war depended upon the atti- 



THE OPPORTUNITY IN AFRICA 37 

tude of organized labor. " Labor has the 
answer," declared he. " There can be only 
one appeal, namely, to patriotism. '^ 

And not only were an increase of wages 
and an appeal to patriotism necessary, but 
also a strict adherence upon the part of the 
government of its promises to enforce the 
provisions of the Commandeering Bill as re- 
gards the owners' industry. That the gov- 
ernment enforced these provisions was as- 
serted by Lloyd George who declared in a 
speech before the Trades Union Congress at 
Bristol that these promises had been faith- 
fully kept. 

" I have seen resolutions from time to time," 
said he, *' at trade union congresses about 
nationalizing the industries of the country. 
We have done it. The whole of the engineer- 
ing industry of this country ... is now 
state controlled, and the profits they make out 
of the war are annexed for state purposes. 
That is better than any resolution you have 
ever carried and when the experiment is 
made why not acclaim it? If you won't 



38 STATE SOCIALISM 

accept a great leap forward along the path 
you want to go, you will never get there/' 

It was true. A great leap forward had 
been taken, and one that could never be re- 
traced. In an address before the American 
Federation of Labor at San Francisco, C. J. 
Ammon of the British Trades Union Congress 
said that the war had accomplished some 
things labor had been seeking for decades — 
nationalization of railways, munition fac- 
tories, and other industries. 

Thus the industrial and economic situation 
continued until, at the intermediation of 
the neutral powers under the leadership of 
the President of the United States, a cessation 
of hostilities finally occurred. The warring 
countries, together with representatives of the 
neutral nations, then entered into a great 
peace council at the Hague. It was a pro- 
longed and stormy session, for there were as 
many questions to settle as there were nations 
represented and delegates present. In gen- 
eral terms, the German demands of peace 
were : " Freedom of the seas : Freedom of Po- 



THE OPPORTUNITY IN AFRICA 39 

land; World-wide recognition of the rights 
of Jews." And in the words of the Kaiser, 
*' Lasting peace." 

The territorial demands of the Germans 
embraced the establishment of Poland as an 
independent kingdom to be comprised of 
all of Russian Poland, a part of Austrian 
Poland, and a small part of German Poland. 
Belgium was to be restored to her sovereignty 
and future neutrality guaranteed, Germany to 
receive as compensation for the evacuation 
of Belgium the Congo state in Africa owned 
by Belgium, or a money indemnity. All 
French territory held by Germany was to be 
restored to France ; France to cede her 
African colonial territory as compensation 
for the evacuation of France. Further de- 
mands of the Teutonic allies were, ''Russia 
to grant autonomy to Finland, Serbia to be 
divided between Austria and Bulgaria, Great 
Britain to restore all of Germany's African 
colonies, and Germany to retain all of 
Alsace-Lorraine." 

Throughout the negotiations much impor- 



40 STATE SOCIALISM 

tance was attached to the disposition of 
African territory of which both Germany 
and England were in much need for colonial 
expansion, and foreshadowing the great era of 
African settlements and development entered 
into by England and Germany after the war. 

Under the term, " freedom of the seas," 
Germany sought to nullify and render of 
little practical effect the power and suprem- 
acy of the British navy. 

On the other hand, the British allies de- 
manded in general terms, " the restoration 
of Belgium, security for France against 
aggression, the autonomy of Poland under 
the sovereignty of the Czar, the rights of 
existence for small nations, and the over- 
throw of the Prussian military machine." 
Thus, while Germany sought to nullify the 
power of the British navy, England sought 
the abolition of German militarism. And 
each country, while seeking to lessen the 
power of the other, worked toward the end 
desired by the world at large, — disarmament 
and permanent peace. 



THE OPPORTUNITY IN AFRICA 41 

There were other questions of territorial 
changes between Russia, Turkey, Austria, 
Italy, and the Balkan states. But of far 
more importance than any change of boundary 
or any of the questions above mentioned ex- 
cept that of disarmament, was the settlement 
of internal questions which each nation was 
to adjust for itself. For a number of years 
before the war there had been an increasing 
agitation over social and economic conditions 
in various countries of the world. This 
agitation was proof of one thing — that there 
were large masses of people in every country 
dissatisfied with the old order of things. 
While this agitation had been carried on 
chiefly by socialists, there were many others 
who admitted that there were many things 
in economic and social conditions that needed 
correction. That there was much dissatis- 
faction in Germany was evidenced by the 
strength of the Socialist party in that country, 
where it was the strongest of any place in the 
world. A year or two before the war the in- 
dustrial situation in Germany was anything 



42 STATE SOCIALISM 

but satisfactory. At that time hundreds of 
thousands of men were out of employment, 
while heavy expenditures were maintained 
all the time for armament purposes. The 
nation was growing more restless and the 
Socialists gaining in power. It has been even 
intimated that the war was brought on to 
save the government from the embarrassment 
of this situation. But the experiences of this 
war, victorious though they have been, have 
added many an adherent to the German 
Socialists who favor disarmament and peace. 
And it is to the German Socialists we may 
look for world peace as well as great internal 
changes in Germany itself. 

There were little or no outward signs of 
dissatisfaction with economic conditions in 
France or Belgium during hostilities. But 
in these countries, the chastening of this 
most terrible and greatest of all wars resulted 
in a greater feeling of sympathy and brotherly 
love, a loosening of the bonds of selfishness 
and the lowering of all people to a more 
common level. Here, as well as among the 



THE OPPORTUNITY IN AFRICA 43 

higher classes in other countries, a greater 
spirit of democracy and good will was engen- 
dered, which portended not only the com- 
plete political and religious democracy of 
all European people, but a rapid advance 
toward economic democracy, toward which 
the world had been vainly struggling up to 
this time. 

But in England, as we have seen, the great 
discontent over economic conditions reached 
an acute stage during the war. Increase of 
wages, nationalization of certain industries, 
together with intimations and promises upon 
the part of leading men of State Socialism at 
the end of the war held the situation in check. 
But after the conclusion of peace there was 
great uncertainty and perplexity as to the 
industrial situation and grave fears as to the 
future. Large numbers of workers employed 
at good wages in the manufacture of muni- 
tions and in keeping the army at the front 
were thrown out of employment. The in- 
dustries of the country were disarranged, 
and like the other belligerents the country 



44 STATE SOCIALISM 

was exhausted industrially and financially 
from the long and costly strain of the war. 
Much of the foreign trade had been lost, 
while millions of soldiers returned home 
seeking employment. 

It was during this trying period when the 
country was attempting to readjust itself to 
peace conditions and regain its foreign trade, 
with the industries disarranged, hundreds 
of thousands out of work, attempts to de- 
crease wages, and the heavy burden of war 
taxes upon the people, that it seemed the 
country would revert to an even worse 
economic condition than before the war. 
With this prospect before the people, and 
the situation growing steadily worse, the 
slumbering fires of discontent became aflame, 
the masses seething with dissension and 
demanding all kinds of relief. It was diffi- 
cult to tell to what the country was drifting. 
But the people had been awakened to their 
own. The much talked of government own- 
ership and State Socialism during the war 
had given promise of a better and brighter 



THE OPPORTUNITY IN AFRICA 45 

future. The Commandeering Bill had been 
passed and put into operation during war 
times as '' a deadly necessity." Yet the 
government dared not repeal it. As Lloyd 
George had stated, a great leap forward had 
been taken, — a step which could not, and 
which the people would not permit the 
government to retrace. The powerful labor 
and trades unions not only forbade the 
government to repeal the bill, but demanded 
that its provisions be extended to other 
industries of the country ; that such indus- 
tries be taken over and the workingman 
thereby made an employee of the govern- 
ment, with better working conditions and 
higher wages as a matter of course. 

There was also a demand that the land 
redemption scheme proposed by Lloyd 
George before the war be carried out. It 
had been suggested by this gentleman that 
all the idle lands held by the English nobility 
be returned to the crown from which the 
title was originally derived, and that under 
a new system of land tenure to be formulated 



46 STATE SOCIALISM 

by a commission, the lands be held open for 
the use and occupancy of the people. 

When the industrial situation reached its 
worst, with threats here and there of civil 
war and predictions of a reign of anarchy, 
in order to save the situation and divert the 
public mind, the government launched a 
vast and immense scheme of colonial devel- 
opment. While there was unanimous consent 
upon the part of all people that certain reforms 
should be made and certain demands granted, 
such as woman suffrage, temperance reform, 
and the land proposition of Lloyd George, 
there were other demands over which there 
was bitter contention. The owners of indus- 
try were not willing that any more of the 
industries of the country be taken over by 
the government. They were not in favor of 
any form of State Socialism. 

But they had no objections to the govern- 
ment trying new schemes in the colonies. 
British East Africa was awaiting settlement 
and development. If the government de- 
sired to enter upon a new system of State 



THE OPPORTUNITY IN AFRICA 47 

Socialism, let it try it in British East Africa. 
But few property rights had been acquired 
there and those that had been obtained were 
not of great value and could be easily recov- 
ered. Outside this, the owners of industry 
generally favored the settlement and de- 
velopment of British East Africa. It would 
relieve the industrial situation in England. 
And in this great new and fertile land 
hardly as yet touched by the hand of man, 
millions of idle men would find employ- 
ment, and the country's surplus population 
for years to come find new homes and pros- 
perity. 

Thus England began a vast campaign of 
colonial settlement and development, and 
out of the turmoil and discontent of its labor- 
ing masses launched a scheme of State Social- 
ism which meant much to her own and to the 
people of other countries. In the rich and 
undeveloped parts of Africa, a splendid 
opportunity was afforded to enter at once 
upon a full and complete program of State 
Socialism, to inaugurate a better order of 



48 STATE SOCIALISM 

things in which there would be more of jus- 
tice for all the people, to enter upon a new 
era of economic democracy — the next great 
forward and upward movement to be made 
by man. Thus it was that the new era first 
found expression in the newer and undevel- 
oped lands of the world. 

Such has always been the case. New 
lands and new countries are necessary for 
the progress and advancement of the world. 
It was in America, when it was a new land in 
the process of settlement and development, 
that religious and political democracy were 
first achieved. And in these great world 
movements of progress and advancement, 
something more than the hand of man is to 
be seen. It was more than a fortuitous 
circumstance that America was discovered, 
the exploration period past and the country 
ready for settlement at a time when there 
was great religious dissatisfaction and unrest 
in Europe. America had been discovered 
five hundred years before by the Norsemen, 
who made numerous voyages and attempted 



THE OPPORTUNITY IN AFRICA 49 

to settle the country. But the time was not 
then ripe for this great event. America 
must be reserved for a later time when there 
was great religious dissatisfaction and unrest 
in Europe. Had the discovery of the Norse- 
men become known to the rest of Europe 
and the colonization of America commenced 
five centuries before it did, European civiliza- 
tion of that period, including religious beliefs, 
would have become so firmly established in 
the new land that it would have afforded 
no asylum for colonists seeking religious 
independence and freedom from persecution 
on this account. Out of this religious 
independence was born political independ- 
ence. That America was in this remarkable 
manner reserved until exactly the right time 
was more than an extraordinary incident. 
It was the guiding and directing hand of 
Providence. 

And the same may be said of Central 
Africa. Though a part of the old world and 
not far from where the greatest nations of 
antiquity arose and fell, the great dark 



50 STATE SOCIALISM 

continent had never been penetrated. The 
great Egyptian civilization arose and fell 
upon her very borders, leaving her as dark 
as before. Even at the time of Columbus 
the greater part of Africa was marked on the 
maps *' Unknown," with pictures of terrible 
beasts, showing the dread with which it was 
regarded. Not until the time of Livingstone, 
only about fifty years ago, was darkest Africa 
penetrated and its great resources and 
possibilities made known. And had it not 
been for the great religious zeal with which 
Livingstone was inspired, he never would 
have been able to overcome the almost insur- 
mountable and impenetrable natural barriers 
with which Africa was surrounded, and to 
accomplish that which no man before him 
had been able to accomplish, for all previous 
attempts to penetrate the continent had 
failed. And yet within those barriers was 
a rich and wonderful country, still unsettled 
and undeveloped at the time of the European 
war. That this rich and fertile country, 
suitable to white settlement with its splendid 



THE OPPORTUNITY IN AFRICA 51 

climate where everything can be grown, has 
been held in reserve until exactly the right 
time, when there was great unrest and 
dissatisfaction over social and economic con- 
ditions, when a new era was beginning out 
of a great world war, is more than a fortui- 
tous circumstance. It was the hand of 
Providence. In the land to which Living- 
stone was called to give his life, the great 
dark continent, was to be established the 
highest and best civilization the world had 
yet seen. As in America religious and 
political democracy grew out of religious 
discontent and unrest in Europe, so in 
Africa economic democracy grew out of 
economic discontent and unrest in the same 
country. 



CHAPTER III 
COLONIAL EXPANSION 

When colonial expansion upon a large 
and unprecedented scale was finally decided 
upon as a definite policy, an act of Parlia- 
ment was passed granting a large sum of 
money for the settlement and development 
of Africa. 

The act of Parliament authorizing the 
expenditure of this money provided for a 
commission to formulate a system of laws for 
the new country. Upon this commission 
served some of England's ablest and fore- 
most men, who devoted themselves earnestly 
and untiringly to the great and important 
work committed to their hands. 

The task before the commission was not 
an easy one. What was to be the order of 
things in the new country ? And not in 
Africa alone but in England as well, for it 



COLONIAL EXPANSION 53 

was realized that the establishment of a new 
order in Africa was but preliminary to the 
inauguration of a better system in the mother 
country. Just as in America, the attainment 
of complete religious and political democracy 
by the colonists had an immediate effect in 
greater political rights and freedom to the 
people of England itself, so it was realized 
that the establishment of a better economic 
order in Africa would have a beneficial effect 
and melt away most of the opposition at 
home. So then, what was to be the order of 
things in Africa, and England as well? 

All classes of people seized the opportunity 
to make known their views and to insist 
upon their demands. The Trade Unionists 
insisted that the principles of the Comman- 
deering Bill be adopted generally; that the 
government obtain ownership and control of 
the industries and run them direct without 
the intervention of the capitalistic class. The 
laborer would then become the employee of 
the government. The profits that formerly 
went to the capitalists and to the government 



54 STATE SOCIALISM 

during the war would go to the laborer in 
higher wages. If this were done there 
would be no more strikes and labor troubles 
would cease. 

On the other hand, the capitalists con- 
tended that government conducted industry 
would never be a success ; that it always 
costs the government more to accomplish a 
piece of work than private individuals ; that 
higher wages to workingmen, and wages not 
controlled by the laws of supply and demand, 
meant more costly production and higher 
prices to consumers ; that men of energy and 
ability were needed to conduct the industries ; 
that unless such men were given a sufficient 
reward and incentive such as under the 
capitalistic system, industry would lack 
proper heads and would fail. It was argued 
that cooperation had not been successful 
in industrial undertakings for this reason ; 
that cooperation had been successful in 
buying and selling commodities, but not in 
their manufacture and production, which 
was quite a different matter. 



COLONIAL EXPANSION 55 

It was also contended that the country 
would be in competition with other countries 
of the world. In other countries wages were 
controlled by the natural laws of supply and 
demand. The number of hours and the 
prices of commodities were governed by the 
same laws. Any attempt to control or change 
any one of these factors or to prevent free 
and open competition would disarrange the 
industrial fabric and make the country un- 
able to compete with other countries of the 
world. No country, in this age of the 
world, can live unto itself. 

Certain members of the commission took 
this view of the case. On the contrary, there 
were others just as strongly in favor of govern- 
ment ownership and a system of State Social- 
ism. Between these contending forces a 
satisfactory solution of the questions involved 
was effected. What was wanted was govern- 
ment ownership, but not government conduct 
or control of industry. The war having 
passed, there was no need of government con- 
trol. But government ownership was desira- 



56 STATE SOCIALISM 

ble for the purpose of effecting a more just 
and equitable distribution of the profits of in- 
dustry between the capitalist and the laborer. 
The great wrong of the old system was that 
the capitalists received too large a share of 
the profits of industry and the laborer too 
little. The one lived in comfort, luxury and 
ease, while the other underwent a dire strug- 
gle for existence with multitudes in abject 
poverty and want. This was the task before 
the commission ; to effect a more equitable 
distribution of the profits of industry between 
the capitalist and laborer, and leave industry 
subject to the same laws of supply and de- 
mand as to wages, hours, prices, reward and 
incentive, the same as before. 

There was also a demand for a different 
system of property tenure. It seemed to be 
generally the opinion that the old system, 
which had succeeded that of feudalism, was 
largely accountable for the great difference 
of material welfare between the rich and the 
poor ; that it had been tried in England the 
last six hundred years and had resulted in a 



COLONIAL EXPANSION 57 

large portion of its inhabitants becoming 
paupers ; that it had been tried in America 
under the most favorable circumstances and 
the results were turning out the same, — the 
wealth of the country was being collected 
into a few hands with the greatest fortunes 
the world had ever witnessed, while poverty 
was developing with alarming rapidity. 

Even before the war, as heretofore stated, 
a different system of land tenure was proposed 
by Lloyd George for idle tracts of land held 
by the English nobility. The proposition 
to return these lands to the government, to 
be occupied and cultivated by the people, 
meant a system of government ownership of 
all such farm lands in England. With farm 
lands as with industry, the object of govern- 
ment ownership was not to conduct or con- 
trol farming, but to effect a more equitable 
distribution of the means of subsistence, and 
to keep such lands open and of easy access to 
the people. 

These were the tasks before the commission. 
After giving a full and impartial hearing to 



58 STATE SOCIALISM 

all parties, after hearing the views and argu- 
ments of the leading men of England and 
other nations, a system of laws was formu- 
lated. They were adapted, with certain 
modifications, to a single industry, to a single 
city, to an entire shire or county, or to a 
combination of farm lands located in different 
shires or counties. They were widely dis- 
cussed by the public press, by citizens, and 
after being given the widest possible publicity, 
were put into final form and adopted by 
Parliament. 

Thus a great victory was achieved by the 
common people by means of which a system 
of wealth distribution and property tenure 
was obtained, as superior to the old system 
as the old system was to that of feudalism. 
Thus England started upon a far-reaching 
reform as regards her own land system, and 
peacefully and voluntarily gave to Africa 
that which was as great an economic advance 
as was the American constitution, wrung from 
her by seven years of warfare, a political 
advance. 



COLONIAL EXPANSION 59 

Shortly thereafter a large industrial army 
was sent to British East Africa and the devel- 
opment and settlement of the country was 
commenced upon a scale never before wit- 
nessed in the world. Towns and cities were 
erected with every modern improvement, in- 
cluding streets, sewers, light and water plants, 
municipal buildings, schools, churches, busi- 
ness buildings and residences, everything 
complete and ready for occupancy. In the 
country districts, farms were laid out and 
houses and other buildings erected thereon, 
public roads constructed, and irrigation and 
drainage systems were undertaken. Thus the 
world was given a most striking object lesson 
within the course of a few years as to what 
an industrial army of peace can accomplish 
for the good of man as compared with the 
destructive armies of war. 

The greater part of the vast amount of 
work of constructing roads, ditches, dams, 
the erection of houses and the building of 
cities was done by machinery. Only the 
best and most approved methods of construe- 



60 STATE SOCIALISM 

tion were used. Experts in all lines from 
different parts of the world were brought to 
the new country to give it the latest and best 
of old world methods. While this was tak- 
ing place, commissions were sent to study 
the school, educational, business, agricul- 
tural, and penal systems of different countries. 
Profiting from the experiences of others, 
only that which was the best and most 
approved in all things was adopted in the 
new country. In fact, its great material prog- 
ress and advancement over other countries 
consists largely in the adoption of the best 
and discarding the worst of what the rest of 
the world had to offer. 

As soon as the houses were ready for occu- 
pancy, both in the cities and country, they 
were taken by settlers who came in a steady 
stream from England. Business of all kinds 
was flourishing. There were many splendid 
opportunities and offerings in the new coun- 
try, and there was plenty of work for the 
workingman under a new and attractive wage 
system. Houses could not be erected fast 



COLONIAL EXPANSION 61 

enough to accommodate the great number 
seeking settlement in the new country. 

The effect upon England was remarkable. 
With the departure of the first industrial 
army, she entered upon an era of good times 
and prosperity which continues and grows 
better every year. The new country fur- 
nished a large and profitable market, espe- 
cially during the first years when there was 
no manufacturing and all supplies were im- 
ported from England. This of itself was a 
great impetus to all lines of industry. But 
in addition, the exodus of so many thousands 
from the home country made a place and 
room for those that remained. As a conse- 
quence all lines of industry flourished, wages 
have been increased and are now the highest 
ever known in the country. The standard 
of living has been raised, and the whole con- 
dition of the common people has been much 
improved. 

The steady stream of pauperism that used 
to pour into the East End of London from 
all over the country, to be consumed and 



62 STATE SOCIALISM 

destroyed by starvation and the terrible con- 
ditions there, has ceased. Men in the prime 
of life are no longer crowded out of the indus- 
tries and forced into pauperism, as was the 
case before the war. They now find work at 
good wages on the farms, and in the factories 
and mines of the country. This great for- 
ward and uplift movement, which has cost 
England no more than the former armament 
expenditures, has paid well. It has fur- 
nished a place for her surplus population in 
a new land where they can live in comfort 
and plenty, and has been almost as profitable 
and beneficial to those that remained at 
home. 

But of far greater import than all this 
prosperity and betterment, within a short 
time after the establishment of the new order 
in Africa, was the inauguration of a full and 
complete system of State Socialism in Eng- 
land. No prosperity or betterment under 
the old system could equal the general good 
and welfare for all the people under the new 
system. While many of the industries of the 



COLONIAL EXPANSION 63 

country had been nationalized and the profits 
applied to various funds for the workingmen's 
benefit, now all activities were to be national- 
ized including even the workingmen's earn- 
ings. Never again would the country revert 
to the old ways. Poverty, want, inferiority, 
and inefiiciency, as formerly known among 
the masses, were to disappear forever. 

A few years after the settlement and devel- 
opment of British East Africa commenced, 
similar movements were started in German 
East Africa, in the French and Belgium 
Congoes, Portuguese Africa and British 
Rhodesia. While this was taking place, the 
settlement and development of Alaska began. 
At an early day a strong public opinion 
developed in the United States that the great 
natural resources of Alaska should not be 
given over to be exploited for private gain 
by individuals or corporations, as were the 
resources of the United States itself, but 
should be held in reserve and be used for 
the benefit of all the people. That a differ- 
ent course was to be pursued in Alaska was 



64 STATE SOCIALISM 

evidenced by the recovery back from private 
interests of valuable coal lands and other 
rights which had been obtained under the old 
land laws. This was not accomplished with- 
out a hard and bitter fight. The country 
then entered into a definite program of 
government ownership by the passage of the 
Alaska Railroad Bill, authorizing the govern- 
ment to construct and own a railroad in 
Alaska for the purpose of developing its 
natural resources. 

The next step was the passage of the 
Alaska Coal Land Leasing Bill, by means of 
which the government was to retain owner- 
ship of coal and other valuable mineral lands, 
instead of passing title to private individuals 
as heretofore. Following this, it was an- 
nounced by the Interior Department that 
an '^ Agricultural Land Leasing Bill " would 
be formulated and presented for passage to 
Congress. 

All this was accomplished quietly, and 
with little or no opposition from any quarter. 
Thus quietly and unconsciously, perhaps, a 



COLONIAL EXPANSION 65 

public sentiment developed which led di- 
rectly to a policy of government ownership 
in Alaska and the establishment of an en- 
tirely different order from that which pre- 
vailed in the United States. After the new 
system has been completely developed and 
successfully operated in the settlement and 
development of Alaska, we may look for its 
adoption in one or more of the Western States. 
And then to spread from State to State like 
other reforms, such as prohibition, woman 
suffrage, mothers' pensions, and working- 
men's compensation. Or there may be an 
awakening of State Socialism, as predicted by 
Lord Northcliffe, an internal reflex action of 
the great changes which occurred in Eng- 
land. 

But let us return to Africa where the new 
era, in a material and economic sense at least, 
has been fully established, and the settlement 
and development of which has been the won- 
der of the world. Never before in the history 
of the world has a country been as rapidly 
settled, improved and developed. While 



66 STATE SOCIALISM 

everything has a new, modern appearance, it 
is difficult for the traveler to realize that it 
has all been erected and constructed within 
the course of a few years. The fine system 
of public roads of perfectly smooth concrete, 
over which fly swiftly moving autos and 
gyros as upon railroad tracks; the attractive 
country homes and farm buildings, with elec- 
trical equipment for doing every kind of 
housework and motor machinery for doing 
every kind of farm work ; the great irrigating 
systems with their vast dams and reservoirs ; 
the beautiful towns and cities covering such 
large areas, free from smoke and soot, heat 
and power being brought from distant mines 
and waterfalls upon electric lines ; the artistic 
modern houses with sleeping porches and 
pretty gardens and the rare and beautiful 
flowers and trees, giving the cities a beautiful 
park-garden appearance; the model schools 
and churches, — the construction of all this, 
within so short a time, is the triumph of 
modern machinery, the miracle of modern 
methods. In this rich and prosperous coun- 



COLONIAL EXPANSION 67 

try every one fares well, all the people live in 
peace and comfort and lack none of the neces- 
sities of life. Regarded by its inhabitants as 
the ideal country, it has been called Equa- 
land because all its citizens, women as well 
as men, have both political and economic 
equality. 



CHAPTER IV 

A NEW SYSTEM OP LAND TENUEE 

Upon the principle of government owner- 
ship, a new system of land tenure was formu- 
lated by the Parliamentary commission and 
put into successful operation in Equaland. 
While the old system was a great ad- 
vance over that of feudalism which it 
succeeded, yet it had been far from satisfac- 
tory, and much criticism was made of it in 
the years preceding the war. It was gener- 
ally admitted that the land was the basis of 
wealth, and that all industries and lines of 
business were dependent upon what the land 
produced. Furthermore, all life rested upon 
and was sustained by the productivity of the 
soil. The land being the basis of wealth and 
the source of man's sustenance, it followed 
that, in order to have a more equitable dis- 
tribution of wealth and the means of subsist- 



LAND TENURE 69 

ence, there should be as free and easy access 
to the land as possible. As long as a nation 
is able to give its citizens free and easy ac- 
cess to its land, it will have little poverty, and 
all its citizens will fare well. But wherever 
a large portion of the citizens of any country 
is denied easy access to the land from any 
cause, pauperism prevails and national degen- 
eracy and decay exist. 

England had always been a country of 
large estates, most of the land being owned by 
a small portion of the population. The land 
was high priced, was seldom for sale, and 
generally remained in the same family from 
one generation to another. The land having 
been difficult to obtain, a large part of the 
people were denied access to it. Those that 
did have access to it, outside the few owners, 
were renters and laborers. All those citizens 
seeking the independence and material wel- 
fare to be derived from the ownership or con- 
trol of land, have been obliged for the last 
two hundred years to leave England for other 
countries such as America, Australia, Canada 



70 STATE SOCIALISM 

and South Africa, which afforded freer and 
easier access to the land. A large portion of 
those unable to leave the country, the less 
capable, less competent and desirable part 
of the population, was collected in the towns 
and cities, sinking deeper into pauperism and 
degeneracy every year, and becoming a men- 
ace to the nation. Such were the conditions 
at the beginning of the war. 

On the other hand, the land of France 
was divided into small farms which gave a 
larger number access to it. There was not 
the extent of poverty in France there was in 
England. It was one of the wealthiest coun- 
tries in the world, the basis of its wealth being 
its farms, and all the people fared compara- 
tively well. It was quite likely, with the 
idea in view of correcting this fatal defect 
of high priced and unaccessible lands in 
England, that Lloyd George demanded a dif- 
ferent system of land tenure, to be applied 
first to the idle lands in the hands of the 
nobility, and then to all cultivable lands 
in general. 



LAND TENURE 71 

For the last two hundred years, what is 
now the United States had afforded free and 
easy access to the soil to its own and to the 
citizens of other countries. But nearly all the 
public lands having been taken, and there 
having been but a comparatively small 
amount thrown open to settlement within 
the last twenty-five years, pauperism has 
rapidly developed in America within this 
period. As long as there was plenty of 
land open to settlement or to be had at a 
low price, there existed little or no poverty 
in the country. But this condition no 
longer existing and the land formerly taken 
being now high priced and beyond the reach 
of a large number of citizens, they thus no 
longer have free and easy access to it. And 
as the population of the country increases 
and the land becomes still higher priced, 
the number denied easy access to it will in- 
crease. The great majority of these will 
become dependent renters, common laborers, 
the owners of little if any property, while 
the less competent and capable will sink 



72 STATE SOCIALISM 

into pauperism in which there are already 
ten millions in the United States. 

The old system of land tenure was brought 
to America from Europe and became firmly 
established in the country at the time of the 
Revolution. While a great political advance 
was attained through the American Constitu- 
tion, there was little or no improvement 
made in the system of property tenure. 
Conditions at the time of the early settle- 
ment of the country and the adoption of the 
Constitution did not demand any change in 
this respect. There was nothing like the 
pauperism and severe struggle for existence 
there is to-day. The early settlers did not 
leave Europe to avoid poverty, but to escape 
religious persecution. The new country was 
so vast, great portions of it being still un- 
explored and unknown, the amount of land 
so much and almost without limit, that the 
time when all would be taken could scarcely 
be conceived. But the time came when con- 
ditions were different even in America. Its 
vast extent of territory was finally taken. 



LAND TENURE 73 

There no longer was easy access to the land, 
and the results turned out the same as in 
European countries. The wealth of the 
country was collected into a few hands, 
while the many owned little or nothing. 

In the Middle States land which had been 
given away or sold at the low price of one 
dollar and twenty cents per acre increased 
in value two or three hundred times, and 
was worth two to three hundred dollars per 
acre. That there had been immense frauds 
committed under the land laws in the taking 
of large tracts for grazing, timber and 
mineral purposes, and in the seizing of 
important water sites, was well known. In 
more recent years, the country was treated 
to the spectacle of a free for all race in the 
opening of certain Indian Reservations to 
settlement. Upon the border of the lands 
to be opened, thousands of people gathered 
with every kind of vehicle and means of 
travel imaginable. Each claim was to be 
given to the one who reached it first. The 
boom of cannon was the signal for the start, 



74 STATE SOCIALISM 

whereupon the people rushed pell-mell over 
the fields for the rich prizes of fine farm 
lands and valuable town sites. Other lands 
have been disposed of by means of a grand 
lottery, free tickets given to the people, and 
the nation's heritage disposed of by chance. 
Thus, what in the beginning was intended 
to give every one a free or low priced home, 
became permeated with fraud and degene- 
rated into a free for all race, or a drawing by 
chance. 

The question was raised, Why give away 
the land at all ? Why give away the land 
any more than any other part of the national 
wealth? Suppose ten million dollars were 
to be taken from the United States treasury 
to be disposed of by chance. Or suppose 
this money secretly located in different parts 
of a large field in amounts of two or three 
thousand dollars, with one or two capital 
prizes of fifty or a hundred thousand dollars. 
And suppose it were made known that upon 
a certain day there was to be a great free for 
all race for these prizes. Every citizen who 



LAND TENURE 75 

desired could participate and choose his own 
means or method of making the race. All 
would be held on the starting line until a 
certain time when the boom of cannon would 
give the signal for the start. The people of 
the country would not have tolerated any- 
thing of the kind for a single moment. Yet 
the land was just as much a part of the com- 
mon wealth as the money in the national 
treasury. In fact, the land constitutes the 
largest part of the wealth in the United States 
and other countries. To give it away, or to 
dispose of it in any manner, is to part with 
that which is the chief source of wealth be- 
longing to all the people. 

The title to all land originates with or is 
derived from the State, or the king, emperor, 
or other ruler who represents the State. 
Such being the case, instead of giving away 
or disposing of the land, what would be more 
natural and simple than to let the title re- 
main in the State ? It was a recognition of 
this principle, influenced, no doubt, by the 
great land frauds and the exploitation by 



76 STATE SOCIALISM 

powerful interests of its great natural re- 
sources, that led the United States to adopt a 
system of land tenure based upon this prin- 
ciple in Alaska. And the same principle is 
the foundation of the system formulated by 
the Parliamentary commission and put into 
successful operation in Africa. Under this 
system, the title of all land remains in the 
State or a subdivision of it, for the use and 
benefit of all the people. Free and easy 
access to the land is thus secured for all time, 
whereas the old system afforded it only in 
the settlement and development of new coun- 
tries while there was still plenty of cheap or 
free public lands to be had. 

Every citizen does not have access to the 
land to go upon and cultivate it whenever he 
pleases. The State gives the citizen a cer- 
tain possessory right or title, by means of 
which the citizen becomes the trustee or 
agent of the State to cultivate the land. 
Though the trustee for the State, the citizen 
is his own master and manager. He is not 
controlled or directed by the State, and is 



LAND TENURE 77 

given as much independence and control of 
the land as an independent owner. His 
title is fully protected and safeguarded by 
law. It may be sold, bought, or otherwise 
disposed of, but is not subject to inheritance. 
His children are otherwise provided for, and 
if old enough, take title direct from the State 
which places them on an equality with all 
other citizens. 

The chief objection to the old system of 
property tenure, and that feature of it which 
caused the collection of the wealth of the 
country in the hands of the few, with little or 
no ownership and poverty on the part of the 
many, was the right of inheritance. By 
means of it wealth was preserved and kept 
intact in the same family from one genera- 
tion to another. Large fortunes were thus 
accumulated, because wealth possesses the in- 
herent power of adding to itself. As a result, 
those who possessed no ability or merit, who 
rendered no service to society, were permitted 
to exact a toll from society for the sole reason 
that they happened to be rich men^s heirs. 



78 STATE SOCIALISM 

No one should be permitted to reap anything 
from society except through his own ability, 
according to his own merit, and in return for 
his own services rendered society. There be- 
ing no right of inheritance in Equaland, 
every citizen is upon this basis. Since the 
ultimate title to all property, both real and 
personal, is in the State, upon the death of 
the citizen who has had control of it, the 
property reverts to the State to be awarded to 
other citizens according to ability and merit. 
There should be no distinction between 
real and personal property. Both should be 
treated alike under the law. Large fortunes 
are made in personal as well as in real prop- 
erty. In fact, some of the largest fortunes in 
America have been made almost entirely in 
personal property. So much of the business 
of all countries is organized into corporations, 
the stocks of which are personal property, 
that if the accumulation of wealth in the 
hands of descendants is to be prevented, the 
law of inheritance must apply to personal as 
well as real property. 



LAND TENURE 79 

As the title to all property is in the State, 
we have complete government ownership of 
every kind and class of property, the citizen's 
personal effects excepted. And as all prop- 
erty belongs to the State, every citizen en- 
gaged in any kind of business, occupation or 
employment is theoretically and legally the 
trustee, agent or employee of the State. This 
is State Socialism in its fullest sense, for out 
of this relationship the State does many things 
for the citizen it would not otherwise do. 
This relationship of trust and trustee, or em- 
ployer and employee, covers every occupation 
and calling in life. Practically, every citizen 
is his own independent master, conducting his 
business or employment as he sees fit, without 
any control or direction on the part of the 
State, doing the best he can for himself and 
in free and open competition with his fellow 
man. All kinds of business, including farm- 
ing and the employment of labor, are con- 
ducted along the same lines and upon the 
same principles as in other countries. The 
law of supply and demand regulates prices 



80 STATE SOCIALISM 

and controls wages. There is the same ri- 
valry and competition in all occupations, each 
citizen trying to succeed, to do the best and 
obtain the most for himself. But back of all 
this is the relationship of trustee, agent or 
employee, which, while it leaves each citizen 
free and independent to act for himself, makes 
a great difference in the condition of the 
people as a whole. 



CHAPTER V 

THE HOUSING SYSTEM AS APPLIED TO 
CITY PROPEETIES 

It is necessary to explain that British East 
Africa is composed of a number of States or 
Provinces, each Province being made up of 
a certain number of Districts. A District 
corresponds in size and population to a 
county, parish or shire in other countries, 
and contains from 20,000 to 60,000 inhab- 
itants, in the agricultural sections, to 100,000 
or more population in the urban sections. 
The District is the unit by which the system 
is administered, though it is further divided 
into Sub-Districts for certain working pur- 
poses. In agricultural sections a Sub-Dis- 
trict corresponds to a Township, from six to 
eight miles square containing from 400 to 
800 population, and in cities to a ward con- 
taining from 1,000 to 10,000 population. 



82 STATE SOCIALISM 

Some of the largest cities cover an entire 
District, being subdivided into Sub-Districts 
according to size. The ultimate title of all 
property within its borders is in the District 
for the use and benefit of all its citizens. 

The first question raised by most visitors 
to this country is, '* The title of all property 
being in the District, on what basis does the 
District give the use and occupancy of its 
property to the citizen ? " There is as 
much difference as to the amount of prop- 
erty under the control and possession of 
different citizens as in any other country. 
There are farms of all kinds and sizes on 
which are buildings of different sizes and 
values. In the towns and cities the houses 
range in size from four or five room cottages 
worth from $1,000 to $1,200 occupied by the 
common workingman, up to the costly and 
palatial homes of the most successful busi- 
ness men. One also sees the widest possible 
difference in the amount of property in the 
possession of citizens for business purposes, 
from the small storekeeper possessing but a 



THE HOUSING SYSTEM 83 

few hundred dollars' worth of stock, up to 
the great stores or manufacturing plants pos- 
sessing capital of hundreds of thousands of 
dollars. 

The basic principles underlying the dis- 
tribution of the District's property among its 
citizens are simple. The first factor is the 
amount of the citizens' earnings for the Dis- 
trict. Let us first examine the housing 
system, different from anything found in 
any other country, and which secures a 
home to every family, no matter how poor 
or humble. 

In other countries a large portion of 
the workingman's wages, ranging from 25% 
to 333%, is consumed in rent. This is a 
constant and ever increasing burden. But 
in this country there are no landlords stand- 
ing between the citizen and his home. The 
District itself furnishes each citizen with a 
home, in many instances with no rental 
whatever, and which is to all intents and 
purposes a home belonging to and owned 
by the citizen. 



84 STATE SOCIALISM 

Since the housing system is based largely, 
though not altogether, upon the amount of 
the citizen's earning for the District, each 
head of a family is given for home purposes 
the property use of three times the amount of 
his annual earnings, based upon a five year 
average. Two-thirds of this amount, or twice 
the annual earnings, is for the home itself, 
consisting of house and lot, flat or apartment, 
and one-third is for personal property, such 
as household goods, furnishings, etc. This 
amount secures a good and substantial home 
to every citizen in accordance with his posi- 
tion and station in life, — to the citizen earn- 
ing $500 per year a property worth $1,000 
and $500 for furnishings, and to the citizen 
earning $1,000 per year a property worth 
$2,000 and $1,000 for furnishings. If the 
citizen so desires, a larger proportion can be 
used for the house and lot, and a less amount 
in personal property. The amount of per- 
sonal property, however, is limited to one- 
third the whole except when used for busi- 
ness or earning purposes. 



THE HOUSING SYSTEM 85 

In providing each householder with a 
home, the value of both the lot and house 
is taken into consideration. How are the 
values of properties ascertained ? It is quite 
necessary that there be a just and equitable 
method of originating and maintaining the 
values of properties between citizens, and 
between the citizen and the District. Let us 
first illustrate how values originate. Take a 
householder who has been earning $1,000 
per year for five years, who thereby becomes 
entitled to a property worth $2,000. If there 
is a property of this value vacant in the Sub- 
District in which he resides, he must accept 
it, and if not satisfactory, await a chance to 
better himself. But if there is no property 
of this value vacant, and it becomes necessary 
to build, the citizen selects a lot which is 
awarded him in competition with bids from 
other citizens and in accordance with what 
other lots have been taken at in the vicinity. 
In starting new towns and in new addi- 
tions to old towns, if there is a good de- 
mand and necessity for more houses, public 



86 STATE SOCIALISM 

auctions are held, and the lots disposed of 
to the highest bidders. Lot values thus 
originate. 

Suppose in the case above that the citizen 
is awarded the lot at the sum of $400. He 
is given a deed of possession giving him the 
exclusive right and title as against all other 
citizens, but the real title or fee simple, how- 
ever, remains in the District. This leaves 
$1,600 for the construction of the house, 
which amount is placed to his credit at his 
bank, designated '' house fund." He selects 
his own architect, contractor and working- 
men. He has the house constructed and pays 
for it by checking upon the $1,600 which 
can be checked upon for this purpose only. 
He furnishes the District duplicate receipts 
covering all his transactions, including the 
payment of the money. The money once 
paid out cannot come back to him, as it must 
be accounted for by the recipients and goes 
to make up their earnings as agents or 
trustees of the District. The citizen thus 
has every incentive and interest to see that 



THE HOUSING SYSTEM 87 

he receives the most for his expenditures, 
the same as if the money were his own. 

The citizen has had the house constructed 
and not the District. In return for his time 
and trouble he obtains a house according to 
his ideas and to suit him. It is stamped with 
his character and individuality. Those who 
do not like the trouble of building must 
await their chances with houses already con- 
structed. 

In the next five years this citizen may 
increase his earnings to $1,500 per annum. 
He would then be entitled to a property of 
the value of $3,000. If he prefers to remain 
in the same property he is allowed $1,000 for 
improvements or enlargement. Thus the 
citizen may retain the same property a life- 
time, if he so desires. 

Plans for all new houses and enlargements 
must be obtained from, or be submitted to, a 
public architect for an estimation as to cost, 
and in order that they may be as sanitary, 
convenient and comfortable as possible. The 
house belongs to the public, while the citi- 



88 STATE SOCIALISM 

zen who builds it may live in it only a few 
years. 

All resident properties have a value and 
grading which begins in the manner above 
illustrated. These values are subject to in- 
crease or depreciation according to what new 
builders bid for vacant lots and the prices at 
which citizens are willing to take houses 
when vacant. Properties are graded accord- 
ing to values as follows : 

Costing or For man earning 

valued at per annum 

Grade A $1,000 to $1,500 $ 500 to $ 750 

" Al 1,500 '* 2,000 750 •* 1,000 

•* B 2,000 ** 2,500 1,000 " 1,250 

" Bl 2,500 '♦ 3,000 1,250 " 1,500 

•• C 3,000 " 3,500 1,500 " 1,750 

" CI 3,500 " 4,000 .... 1,750 " 2,000 

'• D 4,000 " 4,500 2,000 " 2,250 

" Dl 4,500 " 5,000 2,250 " 2,500 

And so on up the scale. 

The value or grade of a property starts 
with the price bid for the lot and the cost of 
the house, as above explained. It may move 
up or down the scale according to the 
demand for it as follows. Suppose a prop- 
erty in Grade B which cost originally $2,200. 
The builder may have made a good selection 



THE HOUSING SYSTEM 89 

in the location which grows in value. He 
may occupy the property free of rent and 
other charges, as long as he makes the yearly 
earnings with which he started, $1,100 per 
year. He is entitled to the benefit of his 
good judgment in selecting the location, and 
permanency of the home and family is 
desirable. 

At his death, or if he vacates for any cause, 
the house is open to selection to all citizens 
entitled to a home in Grade B or any higher 
Grade, and is given to that one who offers 
and has the highest amount of home value to 
his credit. Thus, suppose a citizen earning 
$1,500 per year, who has a home credit 
of $3,000, makes an offer for and accepts 
the property at this valuation. The property 
is thereupon raised in grade to correspond, 
and is supposed to have this value. There 
must have been good reasons for offering 
this much for the property when the citizen 
could have had a property in his own grade 
ranging in value from $3,000 to $3,500. The 
inducement could not have been in the 



90 STATE SOCIALISM 

house, which is the same. It must have 
been in the location which has become more 
valuable. 

When this property becomes vacant again 
it is advertised, giving the grade, which is 
now C. If no one entitled to a property in 
this grade selects it, after a certain time, 
from thirty to sixty days, it is advertised in 
the next lowest grade, Bl, and if there are no 
offers in this grade, it is advertised in the 
next lowest grade, B, throwing it open to 
selection to citizens entitled to properties in 
these grades. The last occupant may have 
been mistaken in his judgment. The value 
he put on the property was not a sound one. 
He may have discovered his mistake and 
vacated for this reason as soon as he found 
another property vacant in his own grade. 
Other citizens do not value the property as 
high and refuse to accept it at his valuation. 
Hence, the property is lowered in grade. Or 
the last occupant may have used good judg- 
ment. Others are of the same opinion and 
select the house, when vacant, at his valua- 



THE HOUSING SYSTEM 91 

tion. The property thus remains in the 
same grade and may do so indefinitely. 
Thus properties rise and fall in value or 
grade, the same as in other countries when 
bought and sold. 

Apartment houses and flats are constructed 
by a number of citizens going together upon 
a codperative basis or by the District itself. 
Each suite of rooms is treated as a single 
property, and is valued and graded according 
to location and its proportion of cost to the 
whole. The same rules and regulations as 
to occupancy apply to a suite of rooms as to 
a single property. 

Since all properties are owned by the 
District, a system of this kind is necessary. 
Properties appreciate and depreciate in value. 
It is a means of furnishing each citizen with 
a home according to his own choice, and at 
a valuation he puts upon it in competition 
with other citizens. The awarding proper- 
ties to the highest bidders preserves values 
to the State. It also saves all disputes 
among citizens as to what properties they 



92 STATE SOCIALISM 

shall occupy, and as to whether some are 
more favored than others in this respect. 

No citizen is permitted at any time to 
have the property use of more than he is 
entitled to according to his earnings. It is 
the object and purpose of the law that all 
citizens be treated with absolute equality 
with reference to the use of the District's 
property. But the earnings of many citizens 
vary from month to month, and year to 
year. Outside those who have steady posi- 
tions and fixed salaries, there is a large class, 
including farmers, business, professional and 
working men, whose earnings are not uni- 
form. There must be some method of 
adjusting differences between the District 
and the citizen when the earnings are not 
uniform. This is accomplished by means of 
rental charges. If the earnings of the 
citizen vary, or fall below the amount on 
which the property was awarded him, he 
is charged with and pays the District the 
rental value on the difference. On the 
other hand, if the citizen should increase 



THE HOUSING SYSTEM 93 

his earnings, the District either furnishes 
him with a more valuable property or pays 
him the rental value on the difference. 

The rental charge generally adopted 
throughout the country is 8% of the property 
value. It is based upon the value of the use 
of the District's capital, worth 4%, of which 
the citizen has the use in lot, house, and 
personal property. Each citizen is, therefore, 
charged with the value of the use of what 
property he receives from the District for 
home purposes at 4%. To this is added 4% 
for maintenance, repairs and depreciation, 
making the rental charge or value 8%. 

All differences between the District and 
the citizen are easily adjusted by means of 
rental charges. Suppose a citizen has been 
earning $1,000 per year and has taken the 
use of 13,000 worth of property, |2,000 in a 
home and $1,000 in personal property. For 
some cause or other his earnings fall to 
$800 per year, according to which he is 
entitled to the property use of only $2,400. 
If he desires to remain in the same property, 



94 STATE SOCIALISM 

he pays the District the rental value of the 
diiFerence, 8% on |600, or $48 per year 
rent. 

While no citizen is permitted at any time 
to have the use of more property than he is 
entitled to, at the same time, permanency of 
the home is secured by permitting the citizen 
to occupy a house as long as he pays the 
rental difference in case of decreased earn- 
ings. A citizen may thus occupy a property 
a lifetime if he so desires, even though his 
earnings decrease, without the slightest injus- 
tice to other citizens. I am informed that it 
rarely becomes necessary for the District to 
eject a citizen from a property on account of 
decreased earnings. These are matters that 
adjust themselves. If the earnings decrease 
greatly, the rental charges become so large 
that the citizen can no longer meet them 
and have sufficient for his other wants. In 
such case, he voluntarily gives up the prop- 
erty and obtains one in accordance with his 
earnings and thereby avoids the payment of 
rent. 



THE HOUSING SYSTEM 95 

Another use made of the rental charge 
is the protection of values. It sometimes 
happens that a property is lowered in grade 
because of a lack of demand at some particu- 
lar time. If there should afterward be a 
demand in this grade and necessary to build, 
a rental charge attaches to the property that 
has been lowered in order to bring it back to 
its original grade if possible, or if not, that 
the District's loss may be equalized by a 
rental charge. Likewise, if the cost of con- 
structing a new house should run over the 
amount to which the citizen is entitled, the 
District furnishes the extra amount upon 
which the citizen is charged rent. 

Permanency of the home is well secured 
under this system. On the other hand the 
system is elastic, and admits of an easy 
exchange of properties for those who desire 
change. Citizens entitled to properties in 
the same grade are permitted to exchange or 
trade with each other, the District accepting 
the exchange, any differences of values being 
adjusted by means of rental charges. If a 



96 STATE SOCIALISM 

citizen has a property that does not suit him, 
he has the opportunity each time there is a 
vacancy in his grade to make a change ; 
whereas an owner of property cannot change 
so easily and is often required to hold on to 
a property because unable to dispose of it at 
any time. Under this system the award of 
a property to that citizen having the highest 
amount of home value to his credit is practi- 
cally the same as a sale to the citizen. The 
vacating of a property when another is to be 
had that suits better is, in effect, a resale to 
the District. But there are not the risks 
and losses in these sales and resales there 
sometimes are in other countries under 
private ownership. Here, if a citizen makes 
a mistake or obtains a bad bargain, he has 
the opportunity to correct it the first time 
there is another suitable property vacant. 
Whereas, under private ownership the citizen 
generally must accept his loss and abide the 
consequences of his mistake or bad bargain. 

While the ultimate title of all property is 
in the District, the relationship of the citizen 



THE HOUSING SYSTEM 97 

to the property is that of an owner and not 
a renter. Every citizen is given the use of a 
home in accordance with his earnings be- 
cause he has earned it, is entitled to it, and 
it is his by right. Even the occupant of a 
suite of rooms in a flat or tenement has 
possession by title directly from the District, 
because he has earned it and it is his by 
right. 



CHAPTER VI 

THE HOUSmG SYSTEM AS APPLIED TO 
PAEM PEOPEETIES 

The District not only furnishes each 
householder with the property use of three 
times his annual earnings, which provides 
every citizen with an appropriate home in 
accordance with his earnings and station in 
life, but goes further, and looks to his needs. 
A large family has need of more room and a 
larger house than a small one. It may have 
been noticed that the values of properties in 
Grade A, in the table on page 88, run from 
$1,000 to $1,500, and that there is the same 
variation in each grade. While in each 
grade there are properties of different values 
to accord with the earnings of the man with a 
small family, there is also a difference in value 
caused by larger houses for large families. 

Districts differ as to the amount of 



THE HOUSING SYSTEM 99 

additional home value allowed for the needs 
of larger families. It ranges from $50 to 
$100 per child with a limit at four or five 
children. In some Districts a man with a 
family of five children or more is allowed 
$250 for the larger house needed, while in 
other Districts the allowance is $500 ad- 
ditional home value. In many Districts 
larger houses are obtained at small ad- 
ditional cost by constructing them plainer, 
less stylish and elegant, and in less valuable 
locations, but not lacking in any of the 
necessary conveniences and comforts. 

As the District furnishes each householder 
with a house in accordance with the size of 
his family, if it is unable to do so at any 
time, it pays the citizen the rental value on 
the difference. On the other hand, if a 
citizen occupies a house larger than he is 
entitled to, on this account he is charged 
with and must pay the District the rental 
value on the difference. This would be in 
addition to any rental charges caused by 
decreased earnings. 



100 STATE SOCIALISM 

For illustration, take the case of a young 
man just married, no children, and earning 
$800 per year. These earnings entitle him 
to a home of the value of $1,600. As his 
family increases, the District must furnish 
him with a house in size and value suitable 
to his larger needs, or pay him the rental 
value of the difference. When he has two 
children he is entitled to $200 additional for 
a larger home, and when he has four chil- 
dren or more to $400 additional. If in either 
case the District is unable to furnish him 
the house in size and value he is entitled to, 
it pays him the rental value on the differ- 
ence, which in the first case would be $16 
per year, and in the second $32 per year. 

But whenever a larger house is vacant, the 
citizen must accept it ; if not, the payment 
of the rental value on the difference to him 
ceases in proportion to what he is entitled to 
as compared with what he is offered. If his 
family consisted of six, and a house is offered 
him suitable for four, or $1,800 value, and 
he refused, he would lose the rental credit on 



THE HOUSING SYSTEM 101 

$200, and if he refused a house suitable for 
six, he would lose the remainder of the rental 
credit. The District could not afford to pay 
the citizen a rental charge when it has prop- 
erties of the size and value to which he is 
entitled vacant. On the other hand, it can- 
not afford to let him occupy a large house 
when he no longer needs it. Hence, as 
his children reach maturity and leave home, 
if he continues to occupy the same property, 
each time a child leaves a rental charge 
attaches, on account of his lesser needs, at 
the same rate at which it accrued when his 
family was increasing. When all his chil- 
dren have left, he would have to pay a 
rental charge of $32 per year if he retained 
the same property, which, in most cases, is 
sufficient inducement to cause him to move 
and seek a smaller property in accordance 
with the needs of his smaller family. 

As a matter of fact, there are no difficulties 
in this respect. Inquiry in a number of 
Districts in different Provinces brought forth 
the assertion that families easily and natu- 



102 STATE SOCIALISM 

rally adjust themselves to the size home 
needed. A small family has little desire 
for a large house because of the extra care 
and labor in taking care of it. This, to- 
gether with the rental charges, causes the 
man, who has occupied a large house until 
his children have grown and leave for them- 
selves, to seek a smaller house suitable to 
the reduced size of the family. 

The District also furnishes each family 
with a house in size according to needs in 
the country sections, the same as in the 
cities. From the allotment of three times 
his annual earning, the farmer obtains his 
house, barns, other farm buildings, and per- 
sonal property such as household goods, 
tools, and machinery. 

That the farmer must obtain both his 
house and farm buildings out of the allot- 
ment due him might at first thought seem 
unjust. While the city man has the full 
value of his allotment in the house and lot 
alone, he has been obliged to expend from 
one-fourth to one-third his allotment for the 



THE HOUSING SYSTEM 103 

lot. Whereas the ground occupied by a 
farmhouse and buildings is of comparatively 
little value, and buildings being necessary 
for every farm, the farmer is not charged 
with the value of the ground they occupy. 
This gives him the whole of his allotment for 
buildings and personal property and enables 
him to obtain both his house and barns. 

It is necessary for the District to have a 
value on all town and city lots, because all 
values belonging to the District must be pre- 
served and maintained ; and without putting 
a value or price on lots their values could 
not be preserved and maintained. Then 
there is such a great variation in the value 
of lots in the same town or city, that, in 
order to avoid disputes between citizens as to 
whether some are more favored than others, 
it is necessary to have a price on each lot to 
be deducted from the allotment so that those 
citizens who obtain the best lots pay for 
them. 

But it is not necessary for the District to 
have a price on its farm land, neither as 



104 STATE SOCIALISM 

regards its use and occupation by the citizen, 
nor to maintain its value. Farm land has a 
different value and from a different cause 
than city lots. In what does the value of 
farm land consist ? It consists in what the 
land is capable of producing in products. 
A piece of land that produces nothing is 
worth nothing. A piece of land that pro- 
duces large crops is worth twice as much as 
a piece of land that produces only half as 
much. This is the real basis of the value of 
farm land everywhere. What a piece of 
land is capable of producing is termed its 
soil value. This must be distinguished and 
kept separate from what is known as the 
labor value in the crops or products. In 
$1,000 worth of farm products there is gener- 
ally $500 worth of labor and $500 worth of 
soil value. The proportion of labor value 
and soil value depends upon the kind of 
products produced, some crops requiring 
more labor than others. Neither soil with- 
out labor, nor labor without soil can produce 
any crops. 



i 



THE HOUSING SYSTEM 105 

Every piece of land possesses a soil value, 
which is determined from what it is capable 
of producing during a number of years. If 
a certain farm produces an average of $1,000 
worth of products per year for a number of 
years, it possesses a soil value of $500 per 
year. This is the real value of the farm and 
represents its worth to the District. Hence, 
in order to preserve and maintain its values 
in farm lands, the District requires the 
citizen occupying the farm to equal the 
average crops each year, or pay it its loss in 
soil value, except in cases of unavoidable 
loss. The farmer must also, the same as the 
city man, equal the average annual earnings 
in accordance with what he has received 
from the District for buildings and personal 
property, or pay the District the rental value 
on the difference. That is to say, if a farmer 
had been earning $1,000 per year and by 
reason thereof had been given the use of 
$3,000 for buildings and personal property, 
if his earnings should fall to $800 per year, 
he would be charged with using $600 more 



106 STATE SOCIALISM 

property than he is entitled to at 8%, or 
per year rent, the law being that if any 
citizen has the use of more than he is 
entitled to he must pay the rental value on 
the difference, and vice versa. In addition 
to the payment of this rent, the farmer 
would also have to pay the District its loss 
in soil value in the $200 worth of products. 
By these means the District preserves and 
maintains its values both in the buildings 
and in the land. 

There being no monetary value attached 
to the land, farms, then, are graded according 
to what they earn and the value of the 
buildings upon them, as follows: 

Farm earning ji»,iiAi^„^ 

per year Buildings 

$ 500 to $ 750 Grade A $1,000 to $1,500 

Al 1,500 " 2,000 

B 2,000 ♦• 2,500 

Bl 2,500 " 3,000 

C 3,000 " 3,500 

CI 3,500 '♦ 4,000 



750 " 1,000 
1,000 "■ 1,250 . . . 
1,250 " 1,500 . . . 
1,500 *' 1,750 . . . 
1,750 " 2,000 . . . 
And so on np the scale. 



In the erection of new buildings and in 
improvements and enlargements, each farmer 
is permitted to expend the allotment due 



THE HOUSING SYSTEM 107 

him as he deems best. He is allowed to 
determine how much is to go into the house 
and how much into the barns. He is sup- 
posed to know his needs best. The Sub-dis- 
trict exercises some control, but not often, 
because not necessary, in seeing that the nec- 
essary barns are not neglected and too much 
money put in the house. Plans must be 
approved by a competent architect in order 
to keep the cost within the allotment. If a 
mistake should be made, and the buildings 
cost more than the allotment, the occupant 
pays the rental charge on the difference 
until he can increase his earnings. 

To illustrate how a farmer may use the 
allotment due him for building purposes, let 
us take the following example : 

Faem, Twenty-Five Acees 

Earnings Size For larger ^ Barns, etc. J?^?'} 

per year family family ■^^"'^^ ^^' «"> ^''^' huildmgs 

$1,000 . . . 2 . . . ... $800 . . . $1,200 . . . $2,000 

1,000 . . . 5 . . . $300 ... 800 .. . 1,500 . . . 2,300 
1,000 ... 6 ... 400 .. . 800 .. . 1,600 . . . 2,400 

This farmer starts with a family of two, 
himself and wife. His family increases to 



108 STATE SOCIALISM 

six, and for the extra house room the Dis- 
trict allows him $400. But the farmer 
thinks he needs more and better barns and 
expends the money in these, being willing 
to put up with the inconvenience of a small 
house. Or, if he had desired, he could have 
expended the extra allotment, or part of it, in 
land improvements such as drainage, tilling, 
ditching, etc. The District gives the farmer 
the privilege of expending the allotment in 
whatever way he deems best, and in this 
respect gives him the privileges and makes 
him the equal of an owner of the land. 
Many an owner in other countries would 
have expended any extra money in the same 
way. And it would probably be good busi- 
ness policy to so expend it, for the probabili- 
ties are that the extra barn will bring the 
larger house through larger earnings by 
reason thereof. 

But suppose the farm becomes vacant. 
The next occupant must take it as he finds 
it. Suppose the next occupant has a family 
of two, the earnings of the farm continuing 



THE HOUSING SYSTEM 109 

the same, $1,000 per year. The house is 
the right size, but there is more money 
invested in the barns than he is entitled to. 
He pays the District the rental value on the 
difference, or $32 per year, as long as the 
situation lasts. If the family should in- 
crease, allowance would be made until there 
was a family of six, when the rental charge 
would cease. Or by increasing his earn- 
ings, he could apply what he would be en- 
titled to on the increase and thereby dimin- 
ish or entirely dispose of the rental charge 
against him. Or if this occupant had taken 
the use of but $600 in personal property, he 
would be entitled to the use of $2,400 in 
buildings, in which case no rental charge 
would have attached. 

The following is another example of 
allotment spent or invested in farm build- 
ings : 

Farm, Twenty-Five Acees 
Earnings Size For larger ^ ^ Total 

per year family family ^^^^^ ^^""^^ ^^^' buildings 

$1,000 ... 2 $800 . . . $1,200 . . , $2,000 

1,000 . . . 5 . . . $300 . . . 1,100 . . . 1,200 . . . 2.300 

1,000 ... 6 ... 400 .. . 1,200 . . . 1,200 . . . 2,400 



no STATE SOCIALISM 

In this instance the occupant has spent 
the allotment so as to give the right size 
house. So far as a change of occupants is 
concerned, the system works smoothly 
however the allotment is expended. If the 
next occupant has not the size family to suit, 
either too large or too small, the difference 
is easily adjusted by means of a rental 
charge. 

The foregoing is the method by which the 
District furnishes each householder with a 
home in accordance with his earnings and 
family needs, — to the laboring man earning 
$400 to $500 per year a modest home valued 
at $800 to $1,200 in keeping with his sim- 
pler needs; while the business or professional 
man, earning $10,000 or $20,000 per year, 
can procure a home with $20,000 or $40,000 
in accordance with his larger needs. So 
that in this country, where the title of all 
real estate is held in common by the District 
for the benefit of all, there are resident prop- 
erties of all kinds, sizes and values, the same 
as in every other country. In the cities one 



THE HOUSING SYSTEM 111 

sees rows of neat, comfortable cottages for 
workingmen, or large apartment houses 
surrounded by beautiful and shaded lawns 
in which the home value of the citizen is 
obtained in a suite of rooms. On another 
street all the houses may be of larger value, 
$5,000 to $10,000 properties, and on the 
finest streets $40,000 or $50,000 properties. 
In the country regions one sees the same 
difference and variety in the size, style and 
value of houses and farm buildings in 
accordance with the size and earnings of the 
farm. 

The law limiting the home and furnish- 
ings of each citizen to three times the amount 
of his annual earnings applies to all citizens 
alike, the rich as well as the poor. There 
could not be one rule for one and an- 
other rule for the other. The term fur- 
nishings includes all personal property of 
which the citizen and his family have the 
exclusive use, as distinguished from property 
used for business or earning purposes. All 
citizens, therefore, are limited to the use of a 



112 STATE SOCIALISM 

home and furnishings three times the amount 
of the annual earnings. 

This limitation is a wise and beneficial law. 
It enables the District to supply the poorest 
and humblest citizen with a good, substantial 
home ; at the same time it affords the wealthy 
finer and more elegant homes — not the costly 
and palatial residences possessed by the rich 
in other countries, but fine enough and good 
enough to satisfy all reasonable men. 



CHAPTER VII 

A NEW SYSTEM OF WAGES 

For living expenses the District pays each 
citizen the same or an equal wage with every 
other citizen. To be entitled to the equal 
wage, the citizen must earn the full pay or 
wage in his work or employment, beginners 
and apprentices, not earning the full wage, 
being paid in proportion. Thus, if the full 
wage in a certain work or trade is $3.00 per 
day, a beginner earning only $1.00 per day 
receives one-third the equal wage paid by the 
District. 

In this connection it is necessary to 
make a distinction between the terms equal 
wage and earnings. The equal wage is 
what the District allows or pays the citizen, 
— to every citizen the same no matter what 
his work or business, whether common 
laborer, artisan, business man, professional 
man, or farmer. Earnings are what the 



114 STATE SOCIALISM 

citizen makes or earns in his work, employ- 
ment, or business. The citizen engages in 
whatever work or business suits him best in 
a free, open, and competitive market, the 
same as in any other country. But every 
citizen being the trustee, agent, or employee 
of the District, whatever his work or business, 
accounts to the District for his earnings, and 
out of the earnings of all, after making cer- 
tain deductions for other purposes, the Dis- 
trict pays to every citizen the same or an 
equal wage. 

The wage paid by the District varies from 
month to month, and year to year. In fact, 
it is very seldom the same, being dependent 
upon what the District makes or earns during 
a month or year. In prosperous months or 
years the wage paid is higher than in other 
months or years in which conditions exist 
which affect the prosperity. In agricultural 
sections it is high, and is likely to be far above 
the average for the year during crop selling 
periods, and below the average when there is 
little or nothing to sell. 



A NEW SYSTEM OF WAGES 115 

Then again, the equal wage paid varies in 
different Districts. The District being the 
unit by which the system is administered, 
and no two Districts being alike in size, popu- 
lation, quality of soil, and character of indus- 
tries, it is seldom that the wage is the same 
in two Districts. Still there is not a great 
variation and it is something near the same 
in Districts of the same Provinces or in the 
same scope or character of country. 

The equal wage is paid monthly and aver- 
ages from $25 to $30 per month. Visitors to 
the country, when first informed as to the 
amount of the equal wage, often express 
astonishment. A wage of $25 to $30 per 
month might be sufficient for the ordinary 
workingman and correspond with what he 
receives in other countries. But what about 
the citizen who earns $400 to $500 per 
month ? To pay this citizen the same low 
wage and put him in this respect upon the 
same basis as the workingman seems contrary 
to all their ideas and opinions as to what is 
just and equitable. Such visitors are in- 



116 STATE SOCIALISM 

formed that the equal wage is only a part of 
what the citizen receives, and are requested 
to reserve judgment until they ascertain all 
the District does for the citizen. 

As a matter of fact the equal wage is high, 
this being a rich and prosperous new country, 
still in the making. In several European 
countries, where the wages paid in the in- 
dustries are less than here, the equal wage 
would be somewhat less. It would depend 
upon what all citizens within a county or 
shire earn during the month. 

The primary object in giving the property 
use of three times the amount of the annual 
earnings is to supply every citizen with a 
good and comfortable home, and the neces- 
sary personal property to furnish it. So the 
object and purpose of the equal wage is to 
supply every citizen with the necessities of 
life, — sufficient food and clothing to properly 
sustain the bodily functions. A monthly 
wage of $25 to $30 may seem small for 
living expenses, even for the workingman. 
But it must be remembered that the citizen 



A NEW SYSTEM OF WAGES 117 

is also furnished a house to live in and the 
personal property to furnish it, and that it is 
not necessary for him to expend any part of 
the equal wage for furnishings or rent, except 
in cases of decreased earnings. In other 
countries from one-fourth to one-third the 
earnings of workingmen and others, who do 
not own their own homes, is paid for rent. 
But in this country the whole of the monthly 
wage can be expended in food and clothing, 
and with proper care and economy is suffi- 
cient to supply each citizen with these neces- 
sities of life. 

But every citizen has need of more than 
the bare necessities of life. One of the basic 
laws of the country is, '* to every one accord- 
ing to his needs." All that the State does for 
the citizen is based upon this principle. The 
law giving each householder a home twice 
the value of his annual earnings is based 
upon need. The common laborer, whose 
earnings are small and tastes simple, does 
not want or desire the large and expensive 
house of the man of much ability whose 



118 STATE SOCIALISM 

earnings are large. Likewise, the common 
laborer does not care greatly for education, 
culture, and the other refinements of life. 
His nature is easily satisfied in this respect. 
Nevertheless, he has needs in addition to a 
home and the bare necessities of life. He 
needs entertainment, recreation, and an op- 
portunity of making the most of himself and 
family. 

The man of ability, on the other hand, is 
not so easily satisfied. There are great differ- 
ences in men. No two are alike, and no 
economic system could succeed long which 
attempted to put all men on an equality. 
The higher nature of the man of ability 
delights in culture, education, and all the 
refinements of life which do not appeal to 
the common laborer. 

The higher needs of all citizens should be 
provided for. The District makes such pro- 
vision by paying to each citizen 20% of his 
earnings in addition to the equal wage. 
This constitutes a fund known as " Special 
Needs.'' It is sufiicient to supply the com- 



A NEW SYSTEM OF WAGES 119 

mon laborer with his simpler special needs. 
It also enables the larger earners to enjoy 
more of the refinements of life than those 
who show less ability by less earnings, — to 
surround themselves with those things that 
appeal to and contribute to the culture and 
development of their higher tastes and more 
refined natures. 

Aside from these considerations, the special 
need fund is general in character and is 
intended to cover special needs of all kinds. 
The equal wage paid every citizen for living 
expenses may not be sufficient in all cases. 
Out of the personal property fund the farmer 
must obtain his house furnishings and farm 
implements, and the mechanic his tools. 
This fund may not always be sufficient for 
the purpose. To provide for deficiencies of 
this kind and to cover other needs not other- 
wise sufficiently supplied, is the special need 
fund. Twenty per cent, for special needs is 
not an arbitrary figure, but has been adopted 
because it is the most suitable for the pur- 
pose. A less per cent, would be too little for 



120 STATE SOCIALISM 

the citizen, and a larger per cent, could not 
be afforded by the District. 

Basing the need of the citizen upon the 
amount of earnings may not appear to be a 
high standard. There are those who take the 
position that the citizen's need should be sup- 
plied irrespective of earnings. In this con- 
nection the need of the State itself must not 
be lost sight of. It is necessary for the State, 
or District, to maintain and support itself. 
There must be sound business principles back 
of what it does for the citizen, or it would 
soon be in a position where it could do noth- 
ing at all. Making the need of the citizen 
dependent upon his earnings sustains the 
State and is an incentive to the citizen to 
exert himself to the utmost that his needs be 
supplied. Incentive is highly essential in any 
society. If needs were not based upon earn- 
ings, many citizens would engage in imprac- 
ticable pursuits, and others would follow 
callings which appeal to them but for which 
they have little or no ability. Every citizen, 
for his principal occupation at least, should 



A NEW SYSTEM OF WAGES 121 

engage in that work or calling in which he 
can earn the most in order that the State or 
•District as a whole may be properly main- 
tained. Hence, it becomes necessary, so far as 
all those citizens who are capable of earning 
anything are concerned, to base needs upon 
the amount of earnings, both for the good 
of the citizen and the State. 



CHAPTER VIII 

EEPAIES AND MAINTENANCE OF 
PROPERTIES 

Each householder is also allowed 10% of 
his earnings for repairing and maintaining 
the real and personal property of which he 
has the use. This is known as the " Repair 
and Maintenance Fund." Five per cent, is 
for keeping up repairs on the house in which 
he lives, and h% is for renewing and main- 
taining his personal property. Houses need 
repairs and personal property wears by 
usage. These are needs that must be pro- 
vided for. Granting each citizen a certain 
proportion of his earnings for this purpose 
gives to each an amount that is in proportion 
to the value of the real and personal property 
of which he has the use. 

As to how the Repair Fund is to be ex- 
pended is left largely to the citizen. He de- 



REPAIRS AND MAINTENANCE 123 

cides what repairs are to be made, buys the 
material, selects the workmen and bargains 
with them as to wages. Being the occupant 
of the property, which is to all intents and 
purposes his own, he is supposed to have suffi- 
cient incentive to do the best he can for the 
property and receive the most for the money. 

The Repair Fund ranges from $50 per year 
for a $2,000 property to $100 per year for a 
$4,000 property, and so on up. Repairs cost- 
ing considerably more than the yearly allow- 
ance are obtained by the occupant accumu- 
lating a repair fund by drawing upon it as 
lightly as possible for two or three years. 
The Sub-district in case of necessity advances 
an amount equal to what has been saved, 
charging the advance against future years. 

The Sub-district exercises some control 
over the expenditure of this fund. Being the 
owner of the property, it has the right to in- 
sist that no necessary repairs be neglected, and 
the money spent for those not necessary. 
In each Sub-district there is a House Board 
which has nominal control and supervision 



124 STATE SOCIALISM 

over all houses within the Sub-district. This 
Board employs a superintendent of buildings. 
When a citizen desires to make repairs he 
sends notice to the House Board, which sends 
its superintendent to inspect the premises. If 
there is nothing else necessary to be done ; or 
if it is not necessary to accumulate a fund for 
a large repair needed in the future, the repair 
applied for, whatever it may be, is allowed. 
There is seldom any difference between the 
superintendent and the citizen, for most 
householders are of sufficient judgment to 
know what is needed. But if not, or if in- 
different, the Board has the right to direct 
the expenditure of the money in those things 
really needed to save and protect the prop- 
erty. Suppose a house needed a new roof, 
electrical, or heating appliance now, or in the 
near future. The Board would not permit 
expenditures in other things not needed and 
which could be postponed. 

For apartment houses and flats, the repair 
fund is made up of b% of the earnings of all 
families occupying the building. A certain 



REPAIRS AND MAINTENANCE 125 

per cent, of this is taken for the repair and 
maintenance of the building as a whole, and 
the balance distributed among the apartments 
according to the earnings of the occupying 
families. 

In case the householder vacates the prop- 
erty before the end of a year, any part of the 
repair fund not expended may be used by 
the next occupant. Though based upon 
earnings, the repair fund is for the mainte- 
nance of the property, and for this reason 
remains with the property. But the citizen 
moving loses nothing, as the house to which 
he moves has a fund for the year, either ex- 
pended or to be expended. It is the duty of 
the House Board to see that all houses are 
kept in good condition and the necessary re- 
pairs made. For those houses occupied by 
transients, or those not interested in keeping 
up the property, the repair fund is taken 
charge of by the Board and expended by it. 
The Board also keeps up the necessary repairs 
on empty houses from Sub-district funds. It 
should also be mentioned that, in case of de- 



126 



STATE SOCIALISM 



creased earnings, the 8% rental charge keeps 
the repair fund intact, the rental charge being 
made up of 4% for the use of the District's 
capital invested in the property, and 4% for 
depreciation, or maintenance. 



CHAPTER IX 

ANNUAL EECEIPTS OF THE CITIZEN 
AS TEUSTEE OF THE STATE 

The following tables, compiled from the 
records of a District Auditor, show what each 
householder receives yearly, and the cost to 
the District and to the citizen on earnings 
ranging from $350 to $1,000 per annum. 

In order to ascertain all that the citizen 
receives from the District, not only the 
Equal Wage, Special Need, and Repair 
Funds must be taken into consideration, but 
also the real and personal estate of which he 
has the use, which is charged against him at 
the rate of 4% per annum. The citizen, 
however, does not pay this charge, except 
a proportionate part in case of decreased 
earnings. 

From the table on page 129 it is seen 



128 



STATE SOCIALISM 



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ANNUAL RECEIPTS 131 

that the citizen, who earns only $350 per 
year, receives from the District a total of 
$477 or $127 per year more than he earns, 
while the citizen earning $1,000 per year 
receives a total of $750 or $250 less than he 
earns. It is also seen from the same table 
that on earnings less than $600 per year there 
is a loss to the District, while on earnings 
of $600 per year and more, there is a gain. 
This makes the cost of the system fall upon 
those who earn the most and who are able 
to bear it. There cannot be a more equitable 
distribution of the means of subsistence, 
poverty cannot be abolished and all citizens 
supplied with the necessities of life, without 
some system that will give more to the 
weaker and less able members of society than 
heretofore. State Socialism does this, sup- 
plying every citizen with sufficient of the ne- 
cessities of life. 

The costs of the system, borne by those 
citizens who earn the most and who are 
therefore able to meet it without any real 
denial to themselves, is not too large in pro- 



132 STATE SOCIALISM 

portion to what is gained. While the citizen 
who is able to earn only $350 per year 
receives from the District $127 more than he 
earns, and the citizen earning $1,000 per 
annum receives $250 less than he earns, the 
latter citizen is rewarded by the District in 
proportion to his larger earnings. He re- 
ceives more from the District and is able to 
live better than the first citizen. While 
both citizens receive the same wage, $330 per 
annum, the citizen earning $350 per year 
receives $70 for special needs, while the 
citizen earning $1,000 receives $200 for this 
purpose. While the first citizen receives 
only $35 for the repair and maintenance of 
his real and personal property, the latter 
receives $100 for this purpose. The first 
citizen is given the property use of $1,050, 
$700 of which is in a house and lot and $350 
in household furniture, while the second is 
given a home worth $2,000, nearly three times 
as valuable, and $1,000 for furnishings. It 
is thus seen that there is much difference 
between the situations of the two citizens, 



ANNUAL RECEIPTS 133 

and while the cost of the system is 25% of 
the earnings of the one, he is rewarded in 
proportion, and has every incentive to main- 
tain his earnings at $1,000 per year, and keep 
himself from falling to the position of the 
other. 



CHAPTER X 

EECEIPTS AND COSTS BY MONTHLY 
PERIODS 

As heretofore stated, State Socialism is op- 
erated by monthly periods. The citizen ac- 
counts to the District for his earnings, and 
the District pays the equal wage and 20% for 
special needs at the end of each month. The 
Repair and Maintenance Funds are drawn 
upon as needed. To save time in making 
calculations, a handbook, containing tables, 
figures, and other information completely 
covering every detail of the system, is used 
by the District Auditors, a copy of which is 
to be found in the possession of every citizen. 

The following and other tables and figures 
found herein have been taken from this 
book, entitled '' The Citizen and the State." 

Having shown what the District pays the 
citizen yearly, the following table showing 



RECEIPTS AND COSTS 



135 






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136 STATE SOCIALISM 

monthly receipts and payments will give a 
more true and accurate idea as to what the 
District does for the citizen. An equal wage 
of $30 per month has been selected from the 
list of tables showing receipts by the citizen 
on earnings from $30 to $831 per month, or 
$1,000 per year. Any other equal wage could 
have been selected, but $30 per month is a 
fair figure, and representative. 

From the foregoing table it is seen that 
the man earning $30 per month receives 
from the District $12.60 more than he earns. 
He receives the equal wage, 20% of his 
earnings for special needs, 10% for repairs, 
and is given a rental credit of $3.60 for the 
month. Earnings of $30 per month, or 
$360 per year, would entitle him to the 
property use of $1,080, the use of which at 
4% per annum is $43.20, or $3.60 per month. 
If this citizen has possession of $1,080 worth 
of property, he is charged $3.60 for the use 
of it, in which case his rental credit for the 
month balances the rental charge against 
him. But he may have possession of more 



RECEIPTS AND COSTS 137 

than $1,080 worth of property. Let us sup- 
pose his average earnings are $40 per month 
and that, on this basis, he has the use of 
$1,440 worth of property. The rental charge 
against him would be $4.80 per month. His 
earnings being only $30 for this month, he 
would pay the District $1.20 rent, the rent 
to be paid being the difference between the 
rental charge and the rental credit or twelve 
cents for each $1.00 of decreased earnings, 
irrespective of the occupant's earnings. 

If, from any unavoidable cause, this citi- 
zen should not be able to earn anything for 
the month, he would receive the equal wage, 
but not the 20%, for this is based upon earn- 
ings. And in such case he would be charged 
with the full rental value. 

It is observed from the above table that the 
citizen earning $30 per month receives his 
rent free, including the repair fund, and $6.00 
more in money than he earns. The man 
earning $40 per month receives $6.80 more 
than he earns, or, his rent value and repairs 
being $8.80 for the month, he earns $2.00 



138 STATE SOCIALISM 

toward these. The man earning $45 per 
month receives $3.90 more than he earns or 
earns $6.00 on his rent value and repairs, 
and the man earning $50 per month receives 
$1.00 more than he earns, or earns $10 of his 
rent and repairs. The man earning $52.50 
per month is fully self-supporting : that is, 
he earns all he receives from the District, 
and forty-five cents additional. On all earn- 
ings of $52.50 per month and over, there is a 
gain to the District in the amounts and per 
centage shown in the table. On all earnings 
of $83 J per month or $1,000 per year the 
percentage of gain to the District is the 
same. These gains offset the losses, and 
make possible a more equitable distribution 
of the means of subsistence between the 
larger and the smaller earners. 



CHAPTER XI 

INCOMES IN EXCESS OP ONE THOUSAND 

DOLLAES PEE YEAR, AND CAPITAL 

FOR BUSINESS PURPOSES 

On earnings which exceed $1,000 per year, 
the citizen receives from the District on the 
first $1,000 the same as other citizens earn- 
ing $1,000. From the excess, the District 
reserves for common use the same percentage 
as is obtained by it upon earnings of $1,000, 
pays the citizen 20% of the excess for special 
needs, 10% for repairs and maintenance, and 
gives him the use of the balance for business 
or other purposes. This makes the cost to 
all citizens earning $1,000 and up the 
same. 

It has no doubt been observed that the 
percentage of cost to the citizen is a rapidly 
increasing one. If no limit were made, the 
cost on the larger earnings would be excess- 



140 STATE SOCIALISM 

ive and unreasonable. For instance, if there 
were no limitation, the cost to a citizen earn- 
ing $10,000 per annum on a yearly wage of 
$330 would be 56.7% of his earnings. So 
large a cost would make the citizen lose 
incentive, and would be injurious and detri- 
mental to the business and industrial life of 
the country. It is therefore necessary to 
make a limit so that a sufficient amount of 
the citizen's earnings can be free for business 
and industrial purposes. 

The opposite table shows what is re- 
ceived on earnings of $1,000 per year and 
upward, on an equal wage of $350 per year. 

In this table each citizen is paid the 
equal wage, 20% of his earnings for special 
needs, 10% for repairs and maintenance of 
his real and personal property. On the first 
$1,000 of his earnings he is given the property 
use of $3,000, the use of which at 4% is worth 
$120 per year. On an equal wage of $350 
per year each citizen also receives 47% of 
his earnings in excess of $1,000 which can 
be used for business purposes, or in a home 



INCOMES AND CAPITAL 141 





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142 STATE SOCIALISM 

and furnishings in the same way and in 
the same proportion as on earnings below 
$1,000 per year. For instance, a citizen 
who earns $10,000 per year receives for liv- 
ing expenses the equal wage $350 per year 
and $2,000 special needs, or a total of $2,350. 
He receives $500 for the repair and main- 
tenance of his house, and $500 for renew- 
ing and keeping up his personal property. 
Each year he is given the use of $4,230, 
making a total of $7,700 received, or of 
which he is given the use on a wage of 
$350 per year. On the first $1,000 of his 
earnings he is given the property use of 
$3,000, $2,000 in a home and $1,000 in 
personal property. If he desires a finer home 
he can make use of the $4,230 each year in 
this way until he has a property and furnish- 
ings of the value of $30,000, or three times 
the amount of his annual earnings, the same 
as any other citizen. Of this amount $10,000 
can be in personal property such as household 
furniture and personal belongings for himself 
and family. But after he has obtained a 



INCOMES AND CAPITAL 143 

home and personal property of this value, the 
excess capital each year must be invested, or 
made use of for business purposes. No rental 
charges on account of decreased earnings 
attaches to this capital, for it is obtained 
directly from the citizen^s own earnings and 
not from the District. 

Since the State is the owner of all the real 
and personal property, and the citizen is the 
trustee, agent, or employee of the District, 
all the earnings of the citizen belong to the 
District, and the District has the right to 
limit or prescribe the use of its capital which 
it entrusts to the citizen. For these reasons 
it has a right to say how much of its capital 
the citizen may have for his own exclusive 
and personal use, and what proportion shall 
be used for business purposes, of which the 
whole community, as well as the citizen him- 
self, receives a benefit. For capital used per- 
sonally is dead capital ; that is, it earns noth- 
ing and benefits only the family which 
uses it. But capital invested in business, 
or to earn an income, is active and is 



144 STATE SOCIALISM 

beneficial to the District as well as to the 
investor. 

The District also limits or fixes the amount 
given the citizen for living expenses. We 
have seen that the man earning $10,000 per 
year has $2,350 for this purpose. The man 
earning $20,000 per year has $4,350 and the 
man earning $50,000 has $10,350 for living 
expenses. This is neither an unwise nor an 
unreasonable law. The amount for this pur- 
pose is sufficient to satisfy any reasonable 
man. Take the man earning $10,000 per 
year. He can have a home worth $20,000, 
personal property of the value of $10,000, 
receives $500 per year for repairs to his 
property, and $500 per year for renewing 
and maintaining his personal property. He 
is given $2,350 for pure living expenses, and 
receives $4,230 each year to be actively in- 
vested in business or used otherwise. This 
is sufficient to enable him to live in a 
way, manner and style befitting his station, 
ability and earning capacity. It is not suf- 
ficient to permit extravagance and luxury. 



INCOMES AND CAPITAL 145 

The amount of money any man can use 
personally and really enjoy is limited, be- 
yond which it becomes mere extravagance 
and luxury, in which the amount of real 
personal enjoyment is very small in propor- 
tion to the cost. If one man in any so- 
ciety is allowed to use $1,000,000 for a 
palatial home for himself, it means that one 
thousand men are the owners of no home 
at all. If one man is allowed to expend 
$1,000 for a cloak for his wife, it means that 
one hundred women must go without cloaks, 
wear old, worn and ragged ones, or possess 
none at all. If one man can sit down to a 
banquet costing $100 per plate, it means that 
one hundred men must go without, or be con- 
tent with half a supper. In any society in 
which all the people are to farewell, the lux- 
uries and extravagances of the few must be 
dispensed with. Poverty can never be re- 
moved or avoided, unless a limit of some 
kind is put upon the expenditures of the 
rich. 

On a wage of $350 per year, the citizen is 



146 STATE SOCIALISM 

given the use of 47% of his earnings in excess 
of $1,000 per year for business, home, or in- 
vestment purposes. The 47% of excess earn- 
ings is obtained as follows : the District 
deducts for general use the same percentage 
on the excess as is obtained by it on the first 
$1,000 which is 23%. Thirty per cent, of 
the excess is paid the citizen for special needs 
and repairs, making a total of 53%, and leav- 
ing 47%, the balance, which is given the 
citizen for business purposes. The cost to 
the citizen, as well as the amount he re- 
ceives for business purposes, depends upon 
and varies with the amount of the equal 
wage. 

The opposite table shows the cost to the 
citizen and the amount of capital reserved or 
given him for business purposes on an equal 
wage of $25 to $30 per month. 

Table showing the percentage of cost to 
the citizen on earnings of $1,000 per year and 
over, and the percentage of the excess earn- 
ings reserved as capital for business pur- 
poses. 



INCOMES AND CAPITAL 



147 



Earnings $1,000 per year, or $83*33 J -3 per month* 



Equal Wage. 


Cost to the Citizen 
on $83.33^. 


Percentage of Excess 

Earnings for Business 

Purposes. 


$25.00 per month. 


$23.33K or 28% 


42% 


25.50 " 


22.83>^ " 27.4% 


42.6% 


26.00 " 


22.33>^ "26.8% 


43.2% 


26.50 " 


21.83>| '' 26.2% 


43.8% 


27.00 '• 


21.331^ " 25.6% 


44.4% 


27.50 " 


20.83K "25.0% 


45.0% 


28.00 " '' 


20. 33^ "24.4% 


45.6% 


28.50 " 


19.83K " 23.8% 


46.2% 


29.00 " '* 


19.33>^ " 23.2% 


46.8% 


29.50 " 


18.83K "22.6% 


47.4% 


30.00 " 


18.33K "22.0% 


48.0% 



CHAPTER XII 

DISTINCTION BETWEEN SINGLE AND 
MAEEIED PERSONS 

A DISTINCTION is made between a house- 
holder, or a head of a family and a single 
person or worker. What the head of the 
family receives outside the equal wage is 
based upon need, and in some instances the 
equal wage is paid solely because of need, as 
when the citizen is unable to obtain employ- 
ment. But with a single person having no 
family of his own or no one dependent upon 
him, the case is different. For instance, a 
single person living at home whose parents 
provide and maintain the home and who are 
able to partially or wholly support their 
children, does not have the needs of a head 
of a family or of a single person upon 
whom some one is dependent for support. 



DISTINCTION BETWEEN PERSONS 149 

For this reason, such persons are paid the 
equal wage only and are not allowed the 
special need, repair and property funds 
unless their earnings are in excess of their 
receipts. A family which is composed of at 
least two persons has need of the equal wage 
and the special need, repair and property 
funds. But it would be an economic mis- 
take for the District to grant all these allow- 
ances to a single person whose earnings are 
less than his receipts, unless there was need 
of them for the person's maintenance and 
support, the need of the citizen being one 
of the basic and fundamental laws of the 
land outweighing any economic considera- 
tions. Hence, such person is paid the equal 
wage only, this also being one of the funda- 
mental laws of the land to which there are 
but few exceptions. 

But single persons whose earnings are 
in excess of their receipts are allowed the 
same as heads of families. In such case 
there is no economic loss to the District, and 
while there may be no need on the part of 



150 STATE SOCIALISM 

the citizen arising from the necessities of life, 
there is a higher need of an ethical character 
in that the citizen's incentive must not be 
destroyed by requiring too large a part of 
his earnings for public purposes. There are 
also other needs of the single person which 
should not be ignored. Something is gen- 
erally required for education, training, or 
there are special needs in getting established 
in a trade, business, or profession. The 
mechanic needs tools, the farmer imple- 
ments, stock and poultry, the professional 
man office equipment, and the business man 
capital. Thus, while needs for living ex- 
penses are less, other needs in obtaining a 
start may be fully as large and urgent. 
Hence, when the citizen demonstrates by the 
amount of his earnings that he possesses the 
proper ability and capacity, he is granted 
the full allotments for these purposes. This 
reasoning, of course, does not apply to a 
single person fully established, and many 
citizens favor a further distinction in order 
that income may be based strictly upon 



DISTINCTION BETWEEN PERSONS 151 

needs. This, however, is a question to be 
adjusted in the future. 

Likewise, a single person upon whom 
another or others are dependent for support 
is paid the full allotment, for such a person 
is the head of the family. Family groups 
are formed in various ways. A householder 
or head of a family does not necessarily 
mean a married person. Any one who 
maintains a lawful and legitimate home is 
the head of a family, and entitled to the full 
allotment. This includes a widower main- 
taining a home with one or more children 
whether minors or of age ; a son or daughter 
living with a widowed mother; a brother 
and sister living together, or an elder 
brother or sister at the head of a family 
of younger brothers and sisters. In case of 
the death of the husband, the wife or any 
one of the children, without respect to age or 
sex, may become the head of the family en- 
titled to the full allotments in accordance to 
earnings. Generally, that one of the family 
who has the highest earnings becomes the 



152 STATE SOCIALISM 

head and the property and other allotments 
are based upon his or her earnings. In such 
ease, other members of the family are treated 
as single persons. 

If a family so desires, the earnings of all 
can be combined, in which case it is paid but 
one equal wage, but the special need and 
property funds are thereby enlarged. The 
earnings of all minors are added to those of 
the head of the family since there is but one 
wage paid on the combined earnings with 
special need and property allotments in ac- 
cordance with the whole. The earnings of 
the wife are also added to those of the hus- 
band, the two treated as one and paid but 
one wage. Also the wife may be the head 
of the family in case her earnings are more 
steady than those of the husband. 

There is no distinction as regards males 
and females in the payment of the equal 
wage. All earners of legal age whether 
male or female are entitled to the equal 
wage. The only exceptions are minors, and 
in case of marriage but one wage is paid a 



DISTINCTION BETWEEN PERSONS 153 

husband and wife. The payment of the 
equal wage to women the same as men has 
had a tendency to increase the wages of 
women in nearly all the industrial, mercan- 
tile, and professional occupations. There 
are very few single women who do not de- 
serve as much as they receive, from $25 to $30 
per month. Any attempt upon the part of 
merchants or manufacturers to reduce the 
wage of women below the wage paid by the 
District results in public disfavor and a loss 
of business and patronage which few can 
afford to incur. 

Another distinction between a single per- 
son and a head of a family is that when the 
head of a family is unable to obtain employ- 
ment the District obtains it for him, and if 
unable to do so, pays him the equal wage. 
But such is not the case with the single per- 
son living at home and upon whom no one 
is dependent, or whose earnings are not 
necessary for the family's support. In such 
case, the equal wage is paid only when the 
person has employment. 



154 STATE SOCIALISM 

In some Provinces there is a limitation 
as to the cost to the citizen so that the cost 
cannot exceed 20% or 25%, whatever the 
limitation may be. Where there is such 
limitation, the amount of earnings at which 
the excess begins may vary. If the limita- 
tion should be 25%, it is seen from the table 
on page 129 that on an annual wage of |330 
the limit is reached at $1,000. If the an- 
nual wage should be less than $330 the limit 
would be reached at a figure less than $1,000 
per year earnings. For instance, if there 
should be an unusually poor year, and the 
annual wage paid only $230, the limit would 
be reached at about $700 instead of $1,000. 
In such case, on all earnings over $700 per 
year the District would deduct the same 
amount as is obtained by it upon the first 
$700, pay the citizen 30% of the excess for 
special needs and repairs, and give him the 
use of the balance for business or investment 
purposes. 

The District auditors have a simple device 
for finding the lower limit in case the an- 



DISTINCTION BETWEEN PERSONS 165 

nual wage is less that $330 on a 25% limita- 
tion. It is simply this, for each dollar the 
annual wage is less than $330, lower the 
limit three dollars. This brings it within 
the 25% limitation. 



CHAPTER XIII 

EETIREMENT BENEFITS, AND PROVISIONS 
FOE WIDOWS AND ORPHANS 

Upon retirement each householder retains 
his household goods and personal effects, 
and is given a homestead in value twice the 
amount of the average of the annual earn- 
ings for all the years he has worked. He is 
also paid the equal wage and 20% of his 
average annual earnings for special needs, 
and 10% for repairs and maintenance. 
Thus, if a citizen's average for all his 
working years is $800 per year, he would 
receive upon retirement $160 per year for 
special needs, $80 for repairs, etc., the equal 
wage, and a property to live in of the value 
of $1,600. This enables every citizen during 
old age or disability to live in a property 
and on a plane and in a manner in harmony 
with his former method of living. 



RETIREMENT BENEFITS 157 

There are no paupers, no infirmaries, nor 
poorhouses in Equaland. There is no ne- 
cessity for them. Every man is paid a wage 
and income during his entire lifetime suf- 
ficient to support him on an equality with 
other citizens and in accordance with what 
he has been accustomed. Instead of Infir- 
maries, there are Hotels, Sanitariums, and 
Old Folks' Homes. There is no charity 
about them. They are conducted by in- 
dividuals or corporations for profit. The 
guests pay their board and other expenses 
from the wage and income received from the 
State. 

Retirement does not occur at any specific 
age, but depends upon the health, strength, 
and capacity of the citizen. It may occur 
any time the citizen becomes incapacitated, 
as by accident in the prime of life or de- 
cline in old age. As a man begins to decline, 
he obtains lighter work requiring less hours 
of labor, sometimes the District finding it for 
him. Most men desire to be busy or to work 
at something. When the citizen is no longer 



158 STATE SOCIALISM 

able to work, he makes application to the 
District Retirement Board to be placed upon 
the retired list. 

The retirement privileges are taken advan- 
tage of chiefly by the workingman and salaried 
employee who has little or no capital. What- 
ever real or personal property he has had the 
use of for business or earning purposes is 
surrendered to the District, and in return 
therefor he receives an income based upon 
his average earnings. When a business man 
retires, whatever business, capital, or invest- 
ments he may possess are surrendered to the 
District. When a farmer retires, he sur- 
renders the farm he has been occupying. 
The same is true of every other citizen. 
However, business men and others, who have 
obtained possession of capital which has been 
invested so as to bring an income, generally 
rely upon their business or income to take 
care of them in old age. 

Upon retirement, a man and wife are given 
the privilege of selecting the mode of life 
that suits them best. Not all old people 



RETIREMENT BENEFITS 159 

desire to, or are able to maintain a home. 
If they should desire to board, travel, live at 
a sanitarium, or old folks' home, the District 
gives them the right to do so. In such case, 
instead of selecting and occupying a property, 
they are paid its rental value ; that is, if there 
is a good demand for houses and few or no 
vacancies. But if there are vacant prop- 
erties, and especially of the size and value 
to which the couple is entitled, the District 
could not afford to pay them the rental value 
and have the property vacant. In order that 
there may be no loss to the District from too 
many old people living in sanitariums which 
are attractive and desirable places, the Dis- 
trict requires all those who are able to keep 
house to select a property in case there are 
vacancies, the rental value of which is paid 
them if they do not wish to occupy it, only 
in the event of its occupancy by others. 

Those who desire to maintain a home 
generally select a house of the size and value 
to which they are entitled, though they may 
remain in any property of which they have 



160 STATE SOCIALISM 

the possession, if they so desire. But by 
selecting a property of the value to which 
entitled, the payment of rental charges is 
avoided. The value of the home to which a 
man is entitled upon retirement is generally 
less than during the prime of life or the best 
working years, as it is based upon the poor 
years, as well as upon the good years. Hav- 
ing selected a home, the man and his wife 
are entitled to its possession and occupancy 
the remainder of their lives. 

Upon the death of either the husband or 
wife, the survivor receives one-half the equal 
wage, 10% of the average annual earnings 
for special needs, 5% for repairs and main- 
tenance, and the property use of one and 
one-half times the average annual earnings. 
This is one-half of what the husband and 
wife together receive, and is based upon the 
theory that it requires one-half as much for 
living expenses and other needs for one 
person as for two. With proper manage- 
ment, supplemented by personal efforts to 
earn something, which the District expects 



RETIREMENT BENEETTS 161 

of all who are able, the income paid is suffi- 
cient to enable the widow or widower to live 
in a manner in harmony with their former 
methods of living. In cases of infirmity and 
incapacity, further allowances are made in 
accordance with needs. 

If the husband dies leaving the widow 
and minor children, the widow is given ad- 
ditional house value in accordance with the 
size of the family. She is also paid certain 
amounts for the support and maintenance of 
the children. In case of the death of both 
parents, certain payments are made to, or in 
behalf of the minor children for their sup- 
port and education. It must be remembered 
that no property, real or personal, can be in- 
herited. Upon the death of the father, all 
the property of which he had the use and 
possession reverts to the State. Neither the 
widow nor the children can acquire title to 
anything from the father, except household 
goods, personal effects and heirlooms. Their 
rights are obtained directly from the District 
itself. When old enough, the child or heir 



162 STATE SOCIALISM 

acquires the use and title to property from 
the District in accordance with earnings. 
But this leaves the widow, and the children 
until they are old enough to earn for them- 
selves, without an income or means of sup- 
port. This is why the widow and children 
are paid incomes for their maintenance and 
support. 

Since all the property or wealth of the 
parents reverts to the District upon their 
death, the District in return endeavors to 
support each child, and give it as good a liv- 
ing, education and training as the parents 
would have done, if living. The income paid 
the child is a certain amount per month ac- 
cording to age, to which is added a certain 
percentage of the parents^ average annual 
earnings. It is sufficient to secure good 
homes for all children among the people. 
Families compete with each other for home- 
less children, and old ladies and widows help 
support themselves by furnishing them a 
home. Most children are free from institu- 
tional life which is lacking in home influ- 



RETIREMENT BENEFITS 163 

ences and home surroundings so essential to 
the welfare and happiness of the child. 

There are no child paupers, no charities, 
nor charitable institutions in behalf of chil- 
dren. Every orphan receives an income in 
his own right from the State sufficient for his 
education and support, because he has need 
of it, and in order that he may become a use- 
ful and self-supporting citizen. 



CHAPTER XIV 

A CONCEETE EXAMPLE AND ILLUSTRATION 

To illustrate the operation of a District as a 
whole, the following facts and figures have 
been obtained from the Kijabe District con- 
taining about one hundred thousand popula- 
tion. Approximately, 70,000 people of this 
District live in towns and cities, the largest 
city, Kijabe, containing about 60,000 people, 
with smaller towns of 300 to 2,000 popula- 
tion. The citizens of Kijabe and the smaller 
towns are merchants, storekeepers, manufac- 
turers, professional men, clerks, mechanics, 
and workers of various kinds, while agri- 
culture is carried on in the country sections 
and is an important industry. There are 
both larger and smaller Districts in the coun- 
try, the larger being city Districts and the 
smaller rural. The operation of the system 
is the same, however, in every District, since 
the principal difference is in the amount of 



A CONCRETE EXAMPLE 165 

earnings as a whole, the number of workers, 
with some variation as to the percentage of 
cost of operation. 

In the Kijabe District there are 26,692 
citizens entitled to the equal wage, 24,647 of 
whom are active earners and 2,045 wholly or 
partially on the retired list. The whole 
number of active workers in a community 
range from one-third to one-half the total 
population. Only about one-fourth the popu- 
lation, however, receive the equal wage and 
other allotments. The reason is, as before 
stated, the earnings of minors, which com- 
prise more than one-third the total population 
and less than one-tenth of whom are workers, 
are added to those of the parent, or head of 
the family. The earnings of wives who work 
are also added to those of the husband. And 
after deducting the number of daughters 
living with parents, also students and others 
who as yet have no regular occupations, the 
number of earners entitled to the equal wage 
is reduced to about one in four of the total 
population. 



166 STATE SOCIALISM 

The earnings of the active citizens of this 
District range from $30 to $100 per month, 
with a number of business and professional 
men, and farmers earning from $2,000 to 
$3,000 per year, or an average of $250 per 
month. Several citizens earn from $4,000 to 
$5,000 per year, and a few of the most suc- 
cessful ones $8,000 to $10,000 per year. 

The earnings of all citizens for the month 
just closed were $1,616,978, or an average of 
$65.60 for each of the 24,647 active workers. 
An average of $65.60 per month, or $787.20 
per year is a favorable comparison with 
the average earnings of the citizens of 
other countries. After elaborate calcula- 
tions, ** based upon thoroughgoing statis- 
tics," the English national income was esti- 
mated by Chiozza Money at $8,750,000,000, 
the national income of Germany by Dr. 
Karl Helferich at $11,250,000,000, and of 
France by Leroy-Beaulieu at $5,000,000,000. 
Dividing the total population of these coun- 
tries by four to ascertain the number of citi- 
zens who earn this income and who would 



A CONCRETE EXAMPLE 167 

receive the equal wage and other allot- 
ments, it is found that the average income 
or annual earnings of each citizen would be 
$770 in England, $693 in Germany, and 
$505 in France. These estimates were made 
before the war. During the war, official and 
other estimates placed the English national 
income considerably higher, and as a matter 
of fact, the general increase of wages among 
all classes during the war would raise the 
amount of the average income or annual 
earnings of each citizen. 

The estimates for France were made sev- 
eral years before the war, and in view of the 
large increase of money and the rise of prices 
in the years preceding and during the war, 
there is reason to believe that the average 
income in France is as high, if not higher 
than in England. 

The only information available as regards 
the United States is an estimate by the De- 
partment of Agriculture that the average 
income of the American farmer is $640 per 
year. The average in all the principal agri- 



168 STATE SOCIALISM 

cultural sections and in the cities is cer- 
tainly higher than this. In the Second 
Revenue District, New York City, there are 
15,000 persons whose total income is one 
billion dollars annually. This in itself, to 
say nothing of the earnings of all the other 
citizens, is sufficient to make an average of 
over $700 for each one of the 1,375,000 earn- 
ers or heads of families in the city. Taking 
into consideration all information available, 
it is more than likely that the average in- 
come of all classes in America is as large, 
and perhaps larger than in England. 

The earnings for the month in the Kijabe 
District were distributed as follows : 

Total Earnings 
^1,616,978 

^323,395 20 fo Special Need Fund. 

161,976 10% Repair and Maintenance Fund. 
365,480 Total Public Expenses. 

33, 334 Use of Excess Capital, -44. 4 % 



,187 ^884,187 Total for all purposes, except equal wage. 



;55732,791 Wage Fund. 

The wage fund of $732,791 gave a wage 
of |27 to each of the 26,692 citizens, and left 
a balance of $11,107 in the treasury. 



A CONCRETE EXAMPLE 169 

From the total earnings of $1,616,978, 
20% was deducted for special needs, 10% 
for repairs and maintenance, and $365,480 
for public or common uses, such as cost of 
administration, salary of District officials, 
maintenance of schools, police and fire de- 
partments, the incomes paid retired citizens, 
widows and orphans, and such other public 
expenses as are raised by taxation in other 
countries. 

There are a number of citizens whose earn- 
ings are in excess of $1,000 per year, or $83i 
per month. As heretofore explained, these 
citizens are given the use of a certain per- 
centage of the excess earnings, dependent 
upon the wage to be paid, for business and 
other purposes. The excess earnings for the 
month were $77,553. It was found that 
after deducting the special needs, repair 
and general public expense funds, out of 
the balance an equal wage of $27 could be 
paid each citizen, leaving a balance of 
$11,107. On a wage of $27, citizens whose 
earnings are in excess of $83,331 per month 



170 STATE SOCIALISM 

are entitled to the use of AAA% of the excess, 
making $33,334 which must be deducted for 
this purpose before the payment of the equal 
wage. 

The wage fund is the balance of all the 
other items. It is what is left after provid- 
ing for all fixed charges and expenses. It is 
the one variable and changeable item, — the 
adjuster of all the other items, so that what- 
ever the earnings the system is workable. 

The 20% paid each earner for special needs, 
the 10% for repairs and maintenance are 
fixed charges. So are the incomes paid re- 
tired citizens, widows and minors, and the 
amount to be reserved for business purposes. 
The amount required for public expenses is 
also fixed and certain, being determined in 
advance for each year by an Appropriation 
Board, the same as public expenses and taxes 
are determined in other countries. A certain 
proportion of the yearly public expense is de- 
ducted from each month's earnings, thereby 
eliminating the payment of taxes, which is an 
unnecessary process under State Socialism. 



A CONCRETE EXAMPLE 171 

All these items are fixed and definite, easy 
to determine, and with what is left for wages 
the system is easily operated. 

In the Kijabe District the earnings of all 
citizens for the last fiscal year were $20,219,- 
748. The equal wage averaged $28 per month, 
leaving a balance of $9,436 in the wage fund 
at the end of the year. The excess earnings 
amounted to $1,438,636. Deducting this 
from the total earnings, there remains the 
sum of $18,781, 112 representing the earnings 
of all citizens whose earnings were $1,000 
per year and less. These citizens were 
entitled to the use of $56,343,536 worth of 
property, $37,562,112 in houses, farm build- 
ings, etc., and $18,781,112 in personal prop- 
erty, to each three times the amount of his 
annual earnings. As a matter of fact the 
District has more than this amount in 
houses and buildings, and the citizens have 
more than this amount of personal property. 
The year being slightly below the average, 
there was a considerable sum paid the Dis- 
trict as rental charges. But the present year 



172 STATE SOCIALISM 

may be above the average, in which event an 
equal amount of rental charges may be 
returned the citizens. 

While a certain amount of personal prop- 
erty is perishable such as household goods, 
furnishings, farm machinery, tools, etc., a 
large part used as capital for business pur- 
poses, investments, etc., is permanent in 
character and is accumulative and keeps 
adding to itself. For this reason, in the 
course of time the amount of personal prop- 
erty in a District may equal or exceed the 
amount invested in houses and buildings. 

The total public expenses for the year were 
$5,130,180. Of this amount $1,632,420 was 
paid for cost of operation, official salaries, 
schools, police and fire protection, etc., which 
sum compares favorably with the general 
public expenses of a similar well improved 
and prosperous District or County in the 
United States. The sum of $1,842,796 was 
paid for the support and maintenance of re= 
tired citizens, widows, and orphans. The cost 
of State Socialism may seem considerable to 



A CONCRETE EXAMPLE 173 

citizens of other countries. But in no other 
country are there as many benefits and privi- 
leges returned to the citizen. The District 
makes nothing from its citizens. All that it 
takes from them, outside of necessary oper- 
ating and running expenses, is returned 
again. The above amounts not only cover 
ordinary public expenses, old age and acci- 
dent insurance for the citizen himself, but 
also the most liberal and complete insurance 
known in the world for his wife and children 
in case of his decease. 

After deducting the two items above from 
the total public expenditures, there remains 
the sum of $1,654,964. This is known as the 
property fund and is the source from which 
the District obtains and perpetuates the prop- 
erty to which its citizens are entitled to the 
use in accordance with earnings. It has been 
seen that the citizens of this District, accord- 
ing to the earnings for the last fiscal year, are 
entitled to the use of $56,343,336 worth of 
property. Supposing the earnings to be 
about the same for a number of years, the 



174 STATE Socialism 

$1,654,964 amounts to $57,923,740 in thirty- 
five years. It is thus seen that the system is 
self-supporting and self-sustaining. All the 
real and personal property of which the citi- 
zen is given the use could be renewed every 
thirty-five years. But this is not necessary. 
While a part of the personal property is per- 
ishable it is replenished by the maintenance 
fund of h% per year, its average life being 
twenty-five years. But the houses, farm 
buildings, etc., are permanent in character and 
last several generations. It is thus seen that 
the older and more improved a country be- 
comes, not so much is required for building 
purposes, and, except the allowance of a cer- 
tain percentage for decreased values and de- 
cay, only the increase of population or in- 
creased earnings need to be provided for. 
Not so much being required for building 
purposes leaves a larger amount to be distrib- 
uted as wages or in other benefits. 

It is thus seen that there are no more dif- 
ficulties or obstacles in operating a District 
than there are in the running of an ordinary 



lii 



A CONCRETE EXAMPLE 175 

County, Shire, or Municipality elsewhere. 
Public or common expenditures include 
more items than elsewhere and a larger per- 
centage of the people's earnings are required 
for common uses. But there is no indefinite- 
ness or uncertainty. There are no unknown 
or unascertainable factors so far as the public 
as a whole is concerned and which cannot be 
provided and taken care of. And so far as 
the citizen himself is concerned, the only in- 
definite factor is the equal wage. But this is 
determined and paid each month, and the 
variation is not large enough to cause any un- 
certainty or inconvenience regarding living 
expenses. 



CHAPTER XV 

PUBLIC AND PEIVATE IMPROVEMENTS 

The method of making and paying for 
public improvements does not differ greatly 
from that employed in other countries. Pub- 
lic improvements of a general nature and 
beneficial to all the people, such as sewerage, 
water, etc., are paid for by the whole com- 
munity, money for which is raised by Dis- 
trict bonds. For making improvements 
which especially benefit a certain class, such 
as street improvements, country roads, drain- 
age, irrigation, etc., bonds are issued and the 
cost of the improvement is assessed against 
abutting properties according to benefits, and 
paid for by the occupants by means of rental 
charges. 

The value of the improvement is added to 
the value of the property. The property is 
benefited, or increased in value by the amount 



IMPROVEMENTS 177 

of the assessment. The assessment is made 
upon this basis. Hence, the property holder 
is charged rent on whatever property value 
he may be using more than he is entitled to 
by reason of the improvement. For illustra- 
tion, suppose a street or other improvement 
of the value of $200 has been made to a cer- 
tain property, the property is valued at $2,000 
and is occupied by a citizen earning $1,000 
per year. By reason of the improvement the 
property is now worth $2,200. Money to 
make the improvement is obtained by bonds 
to be paid for in ten years at 4% interest. The 
District or Sub-District makes the yearly 
payments on the bonds. The first payment 
is $28 being $20 principal and $8.00 interest. 
If the earnings of the occupant of the property 
remains the same, he is charged with occupy- 
ing $200 more property than he is entitled to 
at S% per year, and the interest on the 
bonds, making a total of $24. On ten year 
bonds the rent and interest paid by the citi- 
zen almost equals the payments on the bonds 
made by the District. Improvement bonds 



178 STATE SOCIALISM 

are frequently made payable in fourteen 
years, in which case the yearly rental charges 
paid by the citizen equal the payments made 
by the District. 

When the bonds have been paid, the in- 
terest charge ceases. But in case the prop- 
erty holder does not increase his earnings, 
he continues to pay rent on whatever value 
the improvement adds to the property ac- 
cording to its condition. As streets and 
other improvements are used and much 
worn by the public and in time have to be 
rebuilt, it would not be just to keep charging 
the property holder rent on the original cost. 
Appraisements, therefore, are made every 
five years to determine their condition and 
real value to the abutting properties. 

Rental charges made on account of public 
improvements may cease by the occupant 
of the property assessed increasing his earn- 
ings, for he thereby becomes entitled to the 
use of more property. The District can give 
him the use of this increase in a street, or 
any other improvement, as easily as in an 



IMPROVEMENTS 179 

addition or improvement to his house or in 
a more valuable house. The one costs it no 
more than the other. It is thus seen that 
the District or Sub-District obtains money 
for special improvements upon its bonds, 
makes payments on the bonds out of general 
funds, and reimburses itself by means of 
rental charges on whatever values the im- 
provements add to the benefited properties. 

A similar method is used in behalf of 
farmers to borrow money to make land im- 
provements for the purpose of increasing 
earnings. Principal and interest are paid for 
by the Sub-District out of common funds, 
the farmer being charged interest and rent. 
All such loans must be approved by the 
Sub-District Board. Or the landholder can 
borrow on his own responsibility without 
the approval of the Sub-District Board, the 
principal and interest to be paid out of his 
own income, — the equal wage and special 
need fund, the loaner having a lien on these 
until paid. If the earnings should increase, 
the borrower obtains funds from the Sub- 



180 STATE SOCIALISM 

District, to which he is entitled by reason 
of the increase, to discharge the debt, the 
loaner also having a first lien of this fund. 

There are other regulations, methods, and 
laws covering the loaning of money to make 
land improvements which we will not take 
the time to elaborate. Suffice it to say that 
all such loans are permitted and obtained 
with the view of increasing the earnings of 
the farm and which the occupant is not 
willing or cannot do by his own labor. 
Considerable money is borrowed in all agri- 
cultural Districts for this purpose, and it is 
a means of developing and improving the 
country much more rapidly than otherwise. 

On the other hand, many landholders 
make their own improvements without bor- 
rowing. Those whose earnings are in excess 
of $1,000 per year frequently make use of 
the surplus for this purpose. It has been 
shown that on an equal wage of $27.50 per 
month the citizen is given the use of 45% 
of the excess. Thus, a farmer earning 
$2,000 per year would be given the use of 



IMPROVEMENTS 181 

1450 a year or $2,050 in five years. The 
best place for him to use this capital would 
be in making improvements on his own 
farm to increase his earnings ; to invest it 
where it would be under his own control 
and mastery. In case of a sale of his rights, 
or his removal to another farm, he would 
receive whatever he has so expended in 
money or in other property. Those whose 
earnings are less than $1,000 per year make 
improvements by performing the labor them- 
selves and by paying for what material is 
necessary out of their individual income. 
By so doing, no rental charges are incurred. 
Many like the independence and freedom 
from any debts or charges to be deducted 
from their income. By proving and re- 
claiming the land, the farmer increases his 
earnings. For every $100 added to his 
earnings by draining, irrigating, clearing, 
and reclaiming an acre or two of land, the 
District gives the landholder $300 for more 
buildings, furniture, machinery, or to be 
used in the improvement and reclamation 



182 STATE SOCIALISM 

of still more acres. The landholder thus 
goes on bettering his surroundings and con- 
dition, bettering his farm, buildings, and all 
connected with it, increasing his earnings 
with the assurance that he can have the use 
of the farm as long as he desires, and re- 
ceive from the District, when he is no longer 
able to work, retirement benefits in conform- 
ity and harmony with his method of living 
during his active years. Or, what is more 
probable, by reason of his having increased 
his earnings, he is likely to receive an award 
from the District of a more valuable, better, 
and more productive farm than his own, and 
thus keep on going up and up, the position 
he finally occupies being limited only by his 
own ability and capacity. 

The banking business of the country is 
upon a sound and safe basis. It has been ob- 
served that in loans made to landholders for 
land improvements, the Sub-District pays the 
principal and interest and in return charges 
the farmer rent and interest. A whole com- 
munity being thus responsible for an obliga- 



IMPROVEMENTS 183 

tion makes it as safe and secure as a bond. 
The Sub-District has a sure and easy method 
of collecting any rental charges or interest 
due it by simply deducting the amount out 
of the equal wage or other income going to 
the citizen. 

The District itself, being similar in work- 
ing principles to a corporation, is often a 
large borrower for various purposes. Large 
sums are also loaned business men and cor- 
porations, and upon bonds for making public 
improvements of all kinds. Money loaned 
business men is protected by a lien upon the 
business, and the banks are further safe- 
guarded by a superior system of knowing 
and ascertaining the condition of any business 
at any time. 

There is a larger proportion of capital free 
for business and industrial purposes than in 
other countries. The reason is that since all 
land is owned by the State, there is no buy- 
ing and selling of the fee as between individ- 
uals, leaving a larger amount of capital free 
for other purposes. As a consequence, there 



184 STATE SOCIALISM 

is ample capital for business and industrial 
purposes, and for developing the great and 
almost unlimited natural resources of the 
country. 



CHAPTER XVI 

A NEW COMPULSOEY OCCUPATIONAL LAW 

EvEEY citizen who is paid the equal wage 
must perform the same or average number of 
yearly labor hours. A compulsory occupa- 
tional law requires every citizen who is able 
and capable to become an employee of the 
State and to engage in some work, employ- 
ment, business, or occupation. Wives and 
others having household duties or the care of 
a family, and children supported by parents 
are excepted. So are citizens upon the re- 
tired list, mothers having the support of a 
family, and others able to devote only a part 
of their time to earning. Those citizens able 
to work only a part of the time are paid a 
proportionate part of the equal wage to cor- 
respond with thenumber of hours performed. 
With the above exceptions, all citizens must 
become actively employed as workers and 



186 STATE SOCIALISM 

earners for the District and perform the req- 
uisite number of labor hours. 

There are no idlers, neither an upper rich 
nor a lower poor class, living off the rest of 
society. If poverty is to be eliminated in 
any country it is as necessary to abolish the 
one class as the other. If all citizens are to 
fare well, all must be of service to society. 
All must contribute time, labor and ability 
for the maintenance of themselves and for 
the benefit of the community as a whole. 

If the citizen is not able to obtain sufficient 
work to perform the required number of 
labor hours, the District obtains it for him, 
and if it fails or neglects to do so, the citizen 
is entitled to the equal wage. The citizen 
must be willing and ready to work at all 
times. This entitles him to the wage if the 
District fails or neglects to furnish the nec- 
essary amount of work. 

While the District guarantees employment 
to every citizen in case he cannot find it him- 
self, it does not assume to furnish any par- 
ticular kind of employment. Each citizen 



COMPULSORY OCCUPATION 187 

must maintain himself in his particular trade, 
business, or occupation, and perform the req- 
uisite number of labor hours therein. If he 
fails to do so, the District, through its central 
employment bureau, furnishes him work 
with farmers during busy seasons, with other 
employers of labor, and upon public works. 
Farmers who fail to perform the necessary 
number of hours make up the average on 
public roads and ditches. 

The labor hours performed by wives and 
minor children who assist in supporting the 
family by working part of the time are 
added to those of the husband, and the fam- 
ily receives but one equal wage. The earn- 
ings and labor hours of a father and grown 
son or daughter, living at home, are some- 
times joined when either is unable to find 
sufficient employment to cover the requisite 
hours. The great majority of citizens, how- 
ever, succeed in finding sufficient employ- 
ment in their regular occupations without 
joining labor hours, for by natural laws the 
different trades and industries adjust them- 



188 STATE SOCIALISM 

selves to each other as to the amount of work 
to be performed in each. If business or pro- 
duction is good in the chief industry of a 
District and labor well employed in it, the 
same condition prevails in other industries 
and pursuits. All business, including every 
occupation and pursuit, is so related and in- 
terdependent that one cannot be prosperous 
without having its effect upon the others. 
For instance, in those Districts in which 
agriculture is the principal occupation, if it 
is a good year for crops and farmers are re- 
quired to perform more hours, the large 
crops cause more business and activity in all 
other trades and pursuits. The same is true 
whatever the chief industry of a District, 
whether mining, manufacturing, or agricul- 
ture. 

Agriculture is the chief occupation of the 
country at large, and is the basis and foun- 
dation of all other industries, both as to 
business conditions and the number of labor 
hours required. Monthly crop bulletins are 
issued showing crop conditions in each Dis- 



COMPULSORY OCCUPATION 189 

trict. Manufacturers and business men are 
given reliable information as to what are to 
be business conditions for the year from 
these reports, and regulate their activities 
accordingly. 

But further than this, each District issues 
a monthly report giving the number of labor 
hours performed during the month in the 
District. These reports cover every work, 
trade, business and occupation, and give the 
average number of labor hours performed by 
all citizens in the District during the month. 
They are awaited with much interest by the 
people, for from them each citizen is in- 
formed whether he is keeping up with the 
average. 

At the end of the year, the average num- 
ber of labor hours performed by all the citi- 
zens of the District is ascertained, which 
number each citizen is required to perform 
for the year. At the end of the year some 
are above the average, some below. Those 
below the average must make up the de- 
ficiency the beginning of the next year on 



190 STATE SOCIALISM 

public works if necessary. A proportionate 
amount of the equal wage is withheld until 
the deficiency is made up. Those above the 
average have the excess credited to the 
next year, or to any future year in which 
they may fall below the average. Many 
citizens keep ahead of the average and have 
labor hours to their credit in case of future 
contingencies. 

The District does not attempt to control 
labor, designate or limit the number of hours 
to be performed each day or year. During 
the growing season farmers work a large 
number of hours per day, making up for the 
off season when little work is to be done. 
They are perfectly free as to how many 
hours per day, and as to when they work, 
the only requirement being that they per- 
form the required number of yearly hours. 
This is the case with all the trades and in- 
dustries. The number of hours per day is 
regulated by custom, the condition of the 
industry, the supply and demand for labor 
and not by law. Neither is the number of 



COMPULSORY OCCUPATION 191 

yearly hours arbitrarily fixed, but automatic- 
ally adjusts itself according to the amount 
of work to be done. In busy and prosperous 
years all workers put in more time ; in poor 
years, less time. The yearly average varies 
from 1,500 to 2,000 hours, the monthly aver- 
age from 120 to 180 hours, and the daily 
average from 5 to 7 hours. There being no 
idlers and much of the common labor per- 
formed by labor saving machinery, the 
number of labor hours are less per day than 
in other countries where these conditions do 
not prevail. 

The law requiring every citizen to perform 
the average number of yearly labor hours is 
strictly enforced. Sickness or disability ex- 
cuses the citizen during which he is sup- 
ported by the District. If it is but a tempo- 
rary indisposition, the lost time must be 
made up before the end of the year. But in 
cases of severe illness the citizen is given 
sufficient time to recover and is not required 
to make up the lost time unless physically 
able. Furthermore, he is paid an additional 



192 STATE SOCIALISM 

income if needed by the family on account 
of sickness. 

The District also supports the citizen when 
he is out of employment in case it is unable 
to find employment for him. It refuses sup- 
port only when the citizen refuses such work 
as is offered him. The citizen who does not 
work or who earns nothing has no income 
and receives nothing from the District, for 
what he receives is based upon what he earns. 
It is extremely difficult for one to live with- 
out work, and few attempt it, for there are 
no public charities, and soliciting of alms 
is prohibited by law. The District provides 
for the citizen under all circumstances, except 
those who refuse to work. Hence, extensive 
public and private charities as in other 
countries are unnecessary, and there is no 
excuse or reason for begging or the solicita- 
tion of alms. 

The District is very good to the citizen 
who does his part, but very severe to the one 
who is able but does not. If a citizen is not 
reporting a reasonable number of hours at 



COMPULSORY OCCUPATION 193 

the office of the Sub-District in which he 
resides, there is an enquiry and investiga- 
tion. If there is no apparent physical 
ailment, a medical examination is made to 
determine the amount of energy and vitality 
possessed, and if deficient in these, the citizen 
is treated. Laziness is a disease and is often 
cured so that the citizen becomes a willing 
and ready worker. It is only the wilfully 
lazy and the habitual shirkers that the Dis- 
trict has to deal with, and its measures with 
these are severe when necessary. 

The wilful and persistent shirker may be 
sentenced to hard labor on public works 
under guard and with ball and chain. If 
this is not sufficient, he may be given a term 
in a reformatory or penitentiary, at some 
hard, disagreeable and undesirable labor. 
Most of the hard, undesirable, and unhealthy 
work is performed by the criminal class in- 
stead of the poor and unfortunate as in other 
countries. For instance, since there is practi- 
cally no child labor, the unhealthy and 
dangerous work such as that performed by 



194 STATE SOCIALISM 

breaker boys at coal mines is performed by 
criminals. Other kinds of unhealthy and 
undesirable work are given the criminal, 
due consideration given the condition of his 
health in any work assigned him. 

Notwithstanding this feature, the penal 
system of the country is one of the best and 
most humane in the world. The relation- 
ship of the citizen to the District is not 
changed by the conviction of crime and the 
serving of sentence. He is still the employee 
of the District, his earnings are accounted to 
the District and he receives the same income 
and wage as other citizens in accordance 
with earnings. Out of his income, the 
prisoner's maintenance is paid while serving 
his sentence. The rest is applied upon the 
support of his family, if he has one ; if not, 
he obtains the use of it upon his release. 
The District supports the dependent families 
of its prisoners. The penal systems of other 
countries in taking a criminal from his 
family, in making the innocent family suffer 
in this way for the crime of the father, in 



COMPULSORY OCCUPATION 195 

paying the criminal no wage, in turning him 
out at the end of his term practically penni- 
less, do not give the criminal a fair chance, 
and are costly to the State. A penal institu- 
tion that cannot be run upon a business 
basis and pay a profit out of its proceeds is 
not worthy of existence. 

There is not a large class of confirmed 
criminals here as in other countries. The 
penal institutions of most countries are filled 
with men who, because they have committed 
one crime, are given no chance to earn an 
honest living, and are thus forced to a con- 
tinuance of the criminal life. It is extremely 
difficult and often next to impossible for the 
criminal to find employment. But in Equa- 
land, after serving sentence, the criminal 
is given the same chance and opportunity 
and is placed upon exactly the same basis as 
other citizens. Upon his return to his Dis- 
trict, if he is unable to find employment 
himself, the District obtains it for him, or 
pays him the equal wage if it fails in doing 
so. Being thus assured employment, or a 



196 STATE SOCIALISM 

means of support, there is not the induce- 
ment to the continuance of the criminal life. 
Neither are there the incentives or opportuni- 
ties to enter the criminal life in the first in- 
stance. Much crime is the result of idleness 
and the lack of employment. But in a 
country in which all are required to be 
workers, and in which idleness is prohibited 
by law, many a young man who might have 
become a confirmed criminal is made a use- 
ful and serviceable citizen. 



CHAPTER XVII 

MEANS OF ASOEETAINUSTG THE NUMBEE 
OP LABOE HOUES 

The question naturally arises, what means 
has the District of ascertaining the number 
of labor hours performed by each citizen? 
The citizen being the employee of the Dis- 
trict, his wages and earnings are not payable 
to himself but to the District, as would be 
the case with a business firm or corporation. 
What the employee of the business firm earns 
belongs to and goes to the firm. The business 
transacted is in behalf of the firm. All 
monies received, representing profits or earn- 
ings, go to the firm, since the employee is paid 
a specified amount for his work or services. 
The same principle is applied to the District 
and its citizens or employees. 

Workers of every kind employed in stores, 
ofiices, factories, the trades, and at common 



198 STATE SOCIALISM 

labor, are paid for their services by check, 
stating both the amount payable and the 
number of labor hours performed. These 
checks are required by law to be made pay- 
able to the Sub-District in which the citizen 
resides per himself, as follows : 

''Pay to the order of Sub-District No. 10, of 
District No. 21, per John Smith, the sum of 
Twenty Dollars. 

The General Supply Company, 

Per Treasurer. 

For forty hours' work. '' 

This check cannot be used personally by 
John Smith or cashed by him. The only 
use he can make of it is to turn it into the 
Sub-District office, and obtain credit for the 
amount of earnings and the number of labor 
hours performed. All citizens report their 
earnings to, and deal with the Sub-District in 
which they reside. This is for the conve- 
nience of the District and to facilitate the 
operation of the system, since a District is 
divided into a number of Sub-Districts, each 
containing from 500 to 2,000 or more popu- 



NUMBER OF LABOR HOURS 199 

lation, about one-fourth of whom are workers 
or employees of the District. 

In all the towns and cities, a large number 
of citizens are employees of different business 
houses, firms, companies, and corporations 
which not only keep an account of their em- 
ployees' time, but generally pay in accordance 
with time. Such being the fact, it is easy 
matter for the District to obtain from the 
different firms and corporations the number 
of labor hours performed by each of their 
employees by requiring them to be stated 
upon the pay check. Payment by check is 
an easy, safe, and convenient method of pay- 
ing employees and is in general use in all 
countries. Perhaps a more general and ex- 
tended use is made of it in this country, 
because it is so well adapted to the operation 
of its economic system. 

Hence it is that pay for all kinds of work 
and service is generally made by check, — the 
day laborer performing odd jobs here and 
there requiring a few days or only part of a 
day, as well as the regular employee of the 



200 STATE SOCIALISM 

business firm or corporation. Professional 
men, such as doctors and lawyers, are also 
generally paid by check, the number of labor 
hours stated thereon, the same as on the pay 
check of the commonest laborer. The same 
is true of the bank president, cashier, the 
manager of a large business firm or corpora- 
tion, the directors and stockholders, as well 
as all the employees, for every citizen must 
obtain credit for the average number of labor 
hours for the year. 

Physicians are given so much time for each 
office treatment, and have a minimum charge 
as to time, such as an hour, or half hour. 
They are also given credit for a certain 
amount of time in making calls upon patients. 
When the physician presents his bill, it con- 
tains a statement as to the number of calls or 
treatments, the amount of time, as well as the 
amount due. And when the patient pays the 
bill, he makes a statement on the check as to 
the amount of time, thereby giving his en- 
dorsement and approval as to its correctness. 

The lawyers and other professional men 



NUMBER OF LABOR HOURS 201 

also have minimum charges, keep an account 
of time consumed in services rendered clients, 
and obtain credit by having the time certified 
to on the pay check. Professional men are 
given five years in which to establish them- 
selves, during which period, if they are un- 
able to obtain sufficient business to perform 
the requisite number of hours, they are paid 
a proportionate part of the equal wage. 
There is always considerable professional 
business at the disposal of the District. This 
patronage is generally given those profes- 
sional men unable to obtain sufficient business 
of their own accord to enable them to get in 
the requisite number of labor hours. 

When the work or service is not paid for 
in cash, the employer or debtor issues his 
note or due bill payable to the Sub-District, 
and specifying thereon the number of labor 
hours performed. The citizen delivers the 
note or due bill to the Sub-District office, 
obtains credit for the time, when the note or 
bill is paid, for the amount in earnings. 
The 20% for special needs and 10% for re- 



202 STATE SOCIALISM 

pairs are based upon cash earnings. Hence, 
if the citizen is paid by note or due bill, he 
would not be given credit for these amounts 
until the note is paid. He would, however, 
be paid the equal wage, if he has worked the 
average number of hours for the month 
even though none of his earnings are cash. 

If payment should not be made by check 
or if it should be in money, as may be the 
case for small sums, a receipt is given by the 
payee and statement made as to the amount 
of time consumed which is signed by the 
payer. Both the receipt and statement are 
made in triplicating books. One copy goes 
to the payer, one to the Sub-District oflSce, 
and the third is retained in the book. These 
books can be obtained only at the Sub-Dis- 
trict office, each page is numbered and must 
be accounted for, and no changes can be 
made in the writing without its being de- 
tected. Or what is known as the punch re- 
ceipt book may be used, in which the 
amount received and length of time is 
punched in duplicate on the printed pages 



NUMBER OF LABOR HOURS 203 

of the book. At the end of the month the 
book containing punched duplicates of every 
receipt given is turned into the Sub-District 
office, and the citizen is given credit for the 
number of labor hours performed. Payment 
by check, however, is the method most gen- 
erally used, because it is the easiest and 
most convenient, safeguards the District, 
and is the most favored by the people. 

This is the method by means of which the 
District ascertains the number of labor hours 
performed by the large number of citizens 
which comprise the employee class, and 
which includes every one who is paid for 
work or service of any kind, from the presi- 
dent of a bank or railroad corporation down 
to the commonest laborer. 

Those not belonging to the employee class 
but who are in business of any kind for 
themselves, such as proprietors of stores, 
restaurants, barber shops, etc., are given 
credit for the number of hours their places 
of business are open. In all towns and cities 
the different lines of business commence and 



204 STATE SOCIALISM 

end at the same hour each day and it is a 
matter of common knowledge whether a 
particular business is open during business 
hours. In the case of the business man, his 
business stands for him as to the number of 
labor hours required. He must, however, 
devote most of his time to his business, but 
his time is not marked by the hour like that 
of the employee. It is frequently necessary 
for him to be away from his business, and 
he is given the liberty and privilege of doing 
so as often as he may deem necessary and 
best, without any account being taken of his 
time. But if he devotes only a small part 
of his time to his business each day, it is not 
then his principal work or business, and he 
can obtain credit only for the amount of 
time actually devoted to it. 

Building contractors and other employers 
of labor on a large scale keep an account 
of their own time and charge it to the con- 
tracts performed by them. The time and 
labor required to figure on and obtain con- 
tracts, employ labor, and supervise and 



NUMBER OF LABOR HOURS 205 

direct the work are as necessary and indis- 
pensable as the work of the employees. 
Hence, the large contractor, as well as the 
small one employing only a few men and 
perhaps working with them, keeps an ac- 
count of and charges their time which is 
certified to by the one for whom the con- 
tract is performed. 

Capitalists, investors, stockholders, and 
directors of business firms and corporations, 
obtain credit from the various firms and cor- 
porations for the amount of time necessary 
to look after their interests. A citizen may 
have sufficient capital invested to require all 
his time in looking after and preserving his 
investments. He is given credit in labor 
hours for the amount of time thus required, 
for the care and preservation of the capital 
of which the citizen is the trustee for the 
District is as important a work as any« 

There remains another class, — a very large 
and important one, — the landholder. The 
farmer here is much the same as elsewhere. 
He labors by himself out in the fields or 



206 STATE SOCIALISM 

about his farm buildings, no one but himself 
knowing how long or how much he works. 
His hours are also very irregular and vary 
much at different times of the year. During 
the busy season he labors early and late ; 
during the slack season, little or none at all. 
It may be an easy matter to ascertain the 
number of labor hours performed by the 
farm hand, for he is but an employee, the 
same as other employees, and his time is 
certified to by his employer who pays him. 
But what about the farmer himself? Visitors 
to the country display considerable curiosity 
as to what method is employed to ascertain 
the number of labor hours performed by this 
class of citizens. From the nature of the 
case, it might seem difficult to obtain an 
accurate and satisfactory means. But such 
is not the case. The number of labor hours 
performed by the farmer is ascertained by 
the number of bushels or pounds of each 
kind of product sold. 

It is known by accurate and scientific tests 
how many labor hours are required to pro- 



NUMBER OF LABOR HOURS 207 

duce so many bushels or pounds of any kind 
of product in any kind of soil. These tests 
are made under the supervision of the Dis- 
trict Experimental Stations in dififerent parts 
of the District. There are also reliable 
records based upon the actual experience of 
the farmer himself, for each Sub-District 
office in the rural sections keeps a yearly rec- 
ord of all the products produced upon each 
farm within its borders, and the number of 
labor hours performed by each farmer in pro- 
ducing these crops. From these records an 
annual average of products and hours re- 
quired is obtained for each farm and each 
kind of soil in the Sub-District. These aver- 
ages supplemented and qualified by the tests 
of the Experimental Stations form a reliable 
basis as to the number of labor hours required 
for the production of the different products. 
At the beginning of the season each farmer 
is furnished a report giving the acre average 
for his farm and the labor hours required, 
which he fills out as the season progresses, 
as follows : 



208 



STATE SOCIALISM 



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NUMBER OF LABOR HOURS 209 

It is seen that the five year average for 
this farm is sixty bushels of corn per acre ; 
that it requires 100 labor hours to produce 
100 bushels of corn ; that four acres of corn 
are planted, which will require 240 hours, 
and that 300 bushels are raised and sold, for 
which the occupant obtains a credit for 300 
labor hours ; and that on all his products for 
the year he is credited with 1,660 hours. 

It is also known how many labor hours 
are required to bring a crop to a certain stage 
of development, how many are required for 
the plowing and planting, how many for the 
first and second cultivation, and how many 
for the harvesting. Each month John B. 
White sends a report to the Sub-District 
office stating the condition of each crop, the 
percentage of the average, and the number 
of labor hours performed. Each farmer in 
the Sub-District makes a similar report, and 
each Sub-District makes a monthly report to 
the central District office. These reports are 
issued for the information and guidance of 
farmers and other workers in the District, 



210 STATE SOCIALISM 

but are not conclusive as to the number of 
labor hours performed, as this is determined 
by the number of bushels or pounds of each 
product sold. 

The capacity of the above farm is the five 
year average, neither the best nor the poorest 
year. Seasons vary and in the same season 
some crops do better than others. Of crops 
planted by John B. White, some may be do- 
ing well and are above the average as corn 
and tobacco, and others poorly as wheat, oats, 
and cotton. His object is to raise sufficient 
crops to give him a yearly credit for 1,500 or 
1,600 labor hours, as this has been the aver- 
age for several years ; or, if it is an extra good 
season, producing more crops and requiring 
more hours, the average is likely to be 1,700 
or 1,800 hours. He is informed of this by 
the reports published each month by the 
central District office. 

Now, although some of his crops are doing 
well and others not so good, yet taking it 
altogether, if he sees he is likely to raise 
enough crops to obtain credit for 1,500 



NUMBER OF LABOR HOURS 211 

or 1,700 hours, he bothers no one about it. 
But if any of his crops become injured or 
destroyed by unavoidable cause, as excessive 
drought, excessive rain, by insect, pest, frost, 
etc., and the loss is likely to be such that he 
will fall below the required number of hours, 
though perhaps he has put as much labor on 
those crops as others, or at least always some 
labor, — he reports such damage or injury to 
the Sub-District office, stating the probable 
loss in bushels or pounds, and the estimated 
number of labor hours. The damage must be 
reported at a time when it can be viewed and 
the loss ascertained by the crop inspector of 
the neighborhood. John B. White has kept 
a record of the number of hours performed 
on each crop as it was growing. It is also 
known at the Sub-District office how many 
hours are required to bring each crop to a 
certain stage. With these as a basis the loss 
is ascertained and John B. White is given 
credit for the number of labor hours lost. 

Other farms in the same neighborhood of 
poorer quality soil will not produce as many 



212 STATE SOCIALISM 

bushels per acre, though the same number 
of labor hours are required. The average 
per acre may be only one-half as large as the 
above farm. In such case the occupant 
would obtain credit for the same number of 
labor hours, though he produces only one- 
half as many bushels or pounds of products. 
Frequently there is the same kind and qual- 
ity of soil throughout the Sub-District. 
Often the same kind of soil runs through 
several Districts. Three or four grades of soil 
in the same Sub-District is generally the 
limit. For this reason it is not difficult 
to test the capacity and thereby the num- 
ber of labor hours required for the pro- 
duction of all kinds of crops in the different 
soils. 

On account of the capacity being a five 
year average upon which the labor hours re- 
quired is based, good seasons make up for the 
losses in poor ones. It also frequently hap- 
pens that the farmer has labor hours to his 
credit, and it is only in especially poor years, 
when unusual damage or injury has been 



NUMBER OF LABOR HOURS 213 

caused to the crops, that he claims credit for 
hours lost. 

Nearly every farmer is a producer to a more 
or less extent of live stock and of dairy and 
poultry products. The number of labor 
hours required to produce these products are 
obtained from dairy, poultry and stock farms, 
where it is easy to ascertain the number of 
labor units required in proportion to the 
pounds of products, since the work is devoted 
exclusively to one line. 

The farmer is given credit for labor hours 
in accordance with the number of bushels or 
pounds of products sold and not the number 
produced, for the reason that labor hours are 
based upon and credited only upon earnings. 
Other citizens must turn over their earnings 
to the Sub-District office before credit for 
labor hours can be obtained. The one is de- 
pendent upon the other. And not until after 
the farmer has sold his products can he ac- 
count for his earnings to the Sub-District 
office. Another reason is that a portion of a 
farmer's products may be consumed by him- 



214 STATE SOCIALISM 

self and family or fed to his stock, or poultry. 
He should not receive credit for anything 
consumed by himself, for this is not earnings 
for the District. Neither should he receive 
credit for what is fed his stock or poultry, 
but only for the stock or poultry products 
sold. 

When the farmer sells his products the 
number of bushels or pounds must be stated 
upon the pay check which is made payable 
to the Sub-District office in which he resides, 
per himself. Upon delivery of this check to 
the Sub-District office, he obtains credit for 
labor hours in accordance therewith. 



CHAPTER XVIII 

AWAEDS 

Mention has been made as to how capital 
for business purposes is obtained. Those 
citizens whose earnings are in excess of 
$1,000 per annum are given the use of a 
certain percentage of the excess for business 
or investment purposes. But capital for 
business purposes is not limited to citizens 
whose earnings are in excess of $1,000 per 
annum. To make such limitation would 
bar many citizens from entering upon a 
business career. Hence, a citizen is per- 
mitted to use a portion of the allotment due 
him for business purposes, whatever the 
amount of his earnings. A certain pro- 
portion must be reserved for a homestead, 
because the State contemplates and makes 
provision for a home for every citizen. 
But by accepting a less valuable property 



216 STATE SOCIALISM 

than entitled to, a citizen can obtain the 
use of the balance due him for business pur- 
poses. 

With the capital thus obtained as a nu- 
cleus, more is borrowed of a bank. Many a 
young man obtains a start in this manner. 
If successful he is permitted to use the allot- 
ment due him from increased earnings for 
business purposes. Having once selected a 
home he is not obliged to use any more of 
his earnings for this purpose, unless he so 
desires. And by making use of all his in- 
crease earnings in his business, he may be 
able to build up a large and prosperous busi- 
ness. But if not successful, the business is 
closed out by the bank or District, and the 
citizen given the use of his capital or what 
remains of it for home purposes. 

The citizen, as agent or trustee of the Dis- 
trict, is given full and absolute control of his 
business, but upon his death or retirement 
the business reverts to the District. His 
widow and children are otherwise provided 
for as heretofore explained. The children 



AWARDS 217 



cannot inherit anything from the parent ; 
neither can the parent dispose of or give his 
business to them to be managed and con- 
ducted by them after his decease. When 
the children are old enough to be earners 
and engage in business for themselves, they 
are given an equal opportunity with all 
other citizens. Whatever business may be 
given into their control and management, 
the amount of capital given them for busi- 
ness purposes is dependent altogether upon 
their earnings. Every citizen is given an 
equal opportunity, for none have the advan- 
tage over others by inheritance or deed of 
gift from an ancestor. What each citizen 
obtains for himself and the position he at- 
tains in society is dependent wholly upon 
his individual merit and ability. 

When a business reverts to the District 
upon the death or retirement of its manager 
or owner, it is offered as an award to other 
citizens upon a competitive basis. It is 
offered complete as a running concern in- 
cluding the capital invested in it, ready to 



218 STATE SOCIALISM 

be turned over to a new manager or owner. 
All those citizens who have been engaged in 
the same business are eligible, and the award 
is made to that one of the applicants who 
has exceeded the others the most, or who 
has been the most successful business man 
among them. All the best and most suc- 
cessful businesses are thus given into the 
control and custody of the most capable and 
competent citizens. This is to the best in- 
terests of the District and all its citizens, for 
the more successful a business the more 
beneficial it is to the District. It is also a 
reward, an advancement, and a recognition 
of the merit and ability of the citizen. 

When several citizens are applicants for 
an award, it is simply a matter of mathe- 
matical calculation as to who has exceeded 
the others. The business record of each ap- 
plicant for the last five years is taken as the 
basis. All the elements that go to make up 
a successful business are taken into consid- 
eration, — the amount of personal capital in- 
vested, the amount of borrowed capital, the 



AWARDS 219 



amount of earnings, of debts, credits, over- 
head expense, and the percentage of profits. 

Figuring for an award presents several 
new and interesting arithmetical problems. 
The results are often surprising and are 
awaited with much interest by the appli- 
cants and the clerks and employees of the 
business involved. Sometimes a citizen who 
has been running a comparatively small 
business wins an award over another with a 
larger and apparently more successful busi- 
ness. Smaller earnings are frequently over- 
come by a higher percentage of profits. 
Thus a man whose business has been earning 
$1,800 per year but whose percentage of 
profits is 25% may exceed another whose 
earnings have been $2,200 per year from a 
larger business but whose percentage of 
profits is only 20%. 

Oftentimes an award is won on a small 
margin of advantage in some one item, as in 
a few more dollars personal capital invested, 
a little less borrowed capital, a few dollars 
more earnings, a slightly higher percentage 



220 STATE SOCIALISM 

of profits, or a little less debt or overhead 
expense. This is a constant incentive to 
every ambitious business man to do the very 
best he can and to make his business success- 
ful and profitable in every particular, for an 
award of a larger and more profitable busi- 
ness may be open to him at any time. 

When a citizen accepts an award he sur- 
renders the business previously conducted by 
him to the District. This in turn is offered 
as an award to other citizens, and so on, 
making a series of awards until an opening is 
made for a new man, generally a clerk or sub- 
manager, to engage in business for himself. 

A large part of the business of the country 
is in the hands of corporations which are 
organized and started the same as in other 
countries. Capital stock is sold to citizens 
who use a portion of the allotment due them 
for this purpose. The citizen becomes the 
trustee of the District as a stockholder or 
member of the corporation. He has as much 
incentive to look after and preserve his in- 
vestments as if he were the absolute owner, 



AWARDS 221 



for if a loss should occur the citizen would 
lose the earnings and the use of the capital. 
This is a favored form of investment. 
Watered stock and fictitious values are 
prohibited ; the companies are regulated by 
law ; are well managed ; the dividends large. 

The corporation itself continues indefi- 
nitely, but upon the death of the citizen the 
capital stock owned by him reverts to the 
District, and is open to award to stockholders 
in the same or other companies, who submit 
and surrender if successful a certain amount 
of stock as the basis for the calculation. 
Every citizen judges for himself as to 
whether he wishes to be an applicant for 
an award. What he is to receive must be 
better and more valuable and profitable than 
what he has. Otherwise, it is more profit- 
able for him to retain his own business or 
capital stock. 

If a business becomes old and antiquated 
and no longer profitable, it is closed out upon 
the death of the owner and the proceeds 
turned into the District treasury. 



222 STATE SOCIALISM 

Parms also revert to the District upon the 
death or retirement of the occupant and are 
offered as an award to other farmers upon a 
competitive basis. That one who has ex- 
ceeded the other applicants the most, based 
upon his record as a farmer for the last five 
years, receives the award. Each Sub-District 
office keeps a full and complete record of 
every farm and farmer within its territory, 
from which record the necessary facts and 
figures for each applicant are ascertained. 
All the elements of success in farming are 
taken into consideration and enter into the 
calculations, — the number of acres farmed, 
the kind and character of soil, its conserva- 
tion, the amount of earnings from soil prod- 
ucts, and from other than soil products, 
such as stock, poultry, dairy products, and 
to what extent the applicant has exceeded 
the yearly average for his farm and the same 
kind of soil in the Sub-District. A man 
who has been farming a poor piece of land 
often gains an award over one who has had 
a much better quality of soil, because he has 



AWARDS 223 



done better in comparison with what he had 
though the amount of his earnings may be 
less. 

An enterprising farmer obtains possession 
of a poor piece of land with low earnings, 
and by good management and scientific, 
intensive cultivation, greatly increases the 
earnings. Such a man is very likely to be 
awarded a larger, better, more profitable 
farm, and in the end to obtain possession of 
the best there is in the District. 

Awards are constantly taking place. 
When a landholder dies, instead of his 
land being sold to pay debts or divided 
among his heirs, it is offered as an award. 
And as the one who obtains the award sur- 
renders the farm he occupied which in turn 
is open to award, and so on, there is a con- 
stant incentive to every farmer down to the 
very smallest, including the farm hand or 
day laborer for whom an opening is made, 
to increase his earnings and do the best he 
can. For thereby he is likely to receive an 
award of something better and more valuable 



224 STATE SOCIALISM 

than he had, and thus move on up the scale 
to one of the best and most valuable farms 
in the District. 

Award takes the place of inheritance and 
is the method of disposing of a citizen^s rights 
at his death. It is always confined to citizens 
in the same business or occupation. At any- 
time during his lifetime the citizen may 
buy, sell, trade, or exchange a business, cor- 
poration stock, or any other property right. 
By these means citizens change from one 
business or occupation to another or from 
one form of investment to another. A land- 
holder may sell or exchange his rights to 
farm a piece of land, convert the capital 
invested in machinery, live stock, poultry, 
etc., into money, and with the capital thus 
arising, purchase or engage in another busi- 
ness. The land itself, however, is never 
bought or sold. Title to this remains in the 
District. It is only the citizen's right to 
use the land and occupy the buildings that 
is bought or sold. The consideration in 
such sales is generally the value of the 



AWARDS 225 



buildings and other improvements. For in- 
stance, suppose a farmer has been earning 
$1,500 per year on a certain farm and by 
reason thereof has acquired $3,000 worth of 
buildings. In making a sale, another citizen 
who has to his credit the use of $3,000 turns 
this credit over to the party selling which is 
taken by him in other properties or in money 
for business purposes. 

Personal property of all kinds, such as a 
business, corporation stocky and anything 
used for business or money-making purposes 
can be bought and sold. Buildings used for 
business purposes such as stores, offices, 
factories, warehouses, etc., are classed as 
personal property and are subject to sale. 
Ground rent is paid for the use of the ground 
on which all business buiMings are located 
to the District in which is the title. 

In selling or disposing of a business, cor- 
poration stock, or any other right or property 
of which the citizen is the trustee, the title 
in the District is preserved, and the money 
arising from the sale does not come into the 



226 STATE SOCIALISM 

citizen's hands, and cannot be used by him 
personally. Payment is made by check 
payable to the District per the seller in 
order to make title good in the purchaser. 
The check is deposited in a bank designated 
'' trust fund," and can be used or checked 
upon only for business or investment pur- 
poses. 



CHAPTER XIX 

CHANGE OF EESIDENCE 

A CITIZEN may change his residence from 
one District to another or to another State 
without losing any of his property rights. 
This is necessary in order that no citizen 
may be confined to any one District for life 
and to facilitate a change of residence. A 
citizen may obtain temporary employment 
in another District, and his earnings paid 
over to and accounted to the District of 
which he is a resident which pays him the 
equal wage and other benefits. The same is 
true of those citizens whose business is trans- 
acted in different Districts or States as 
commercial travelers, salesmen, and others 
who travel from place to place. Their earn- 
ings are accounted to, and the equal wage and 
other benefits are paid them by the District 
in which they have their place of residence. 



228 STATE SOCIALISM 

When a citizen changes his residence to 
another District, he is permitted to take with 
him whatever personal property may be 
necessary for his needs, such as household 
goods, farming utensils, machinery, etc. Or 
he may convert his personal property into 
money by public or private sale, in which 
case the proceeds are forwarded by the old 
District to the new one for his use and bene- 
fit. Or if he has capital invested in business 
and needs it for business purposes in the new 
District, he may convert it into money by 
sale or otherwise which is forwarded to the 
new District for his use. The reason is that 
the citizen has earned nothing in the new Dis- 
trict and is not entitled to anything from it, 
either in the way of personal property or 
capital for business purposes. The new Dis- 
trict accepts the record of the old District as 
to the citizen's annual earnings, and furnishes 
him a house, if a town or city resident, in ac- 
cordance with his former earnings. It runs 
no risk in so doing, for if the earnings should 
not equal that required, the difference is made 



CHANGE OF RESIDENCE 229 

up by rental charges. The new District can 
also without risk let the newcomer have the 
occupancy of a farm in accordance with his 
former earnings, if any are vacant or open to 
occupancy. If the earnings fall below that 
required by the farm, the District's loss 
is made up by a rental charge on the 
buildings and the payment of its loss in 
soil value. When the new citizen has re- 
sided in the District long enough to become a 
legal resident he is eligible to an award. 

The citizen who has resided in more than 
one District, upon retirement, is paid retire- 
ment benefits by each District in proportion 
to the number of years and the amount of 
his earnings in each. And upon his death, 
the income paid his widow and children is 
pro-rated according to his earnings in the 
different Districts. 

It is necessary in order for a citizen to be- 
come a resident of a District to first obtain 
work in the District. Becoming a resident 
means an employee, rendering an account of 
earnings and receiving the equal wage and 



230 STATE SOCIALISM 

other benefits. Citizens are perfectly free to 
live anywhere if they have sufficient means 
for their support. But those not having a 
sufficient income to live outside their own Dis- 
trict must first obtain employment or have an 
occupation before making a change of resi- 
dence. This law also applies to immigrants 
coming into the country from other* lands. 
Foreign travelers are accorded all the rights 
and privileges of travelers the same as in other 
countries. A foreign traveler or visitor may 
remain in the country indefinitely, as long 
as he has the means of paying his expenses. 
But immigrants without means of support, 
neither friends nor relatives who will care for 
them, are not permitted to enter or remain in 
the country unless employment or an occupa- 
tion is obtained in some District. 

Since the country is new and rapidly 
developing, national employment bureaus at 
the principal seaports of entry find places for 
all desirable immigrants. 

If a citizen wishes to leave the country and 
make his residence in a foreign land, the 



CHANGE OF RESIDENCE 231 

present worth of his property rights and bene- 
fits according to his age and prospects in life 
is ascertained and paid him in money by the 
District or Districts of which he has been a 
resident. People from foreign lands with 
capital, desiring to become residents and en- 
gage in business, must convert their capital 
into property rights to be used like other 
citizens for home, business, or farm purposes. 
Most immigrants, however, have only suffi- 
cient money to settle them in the country. 
But those who do bring capital receive a full 
equivalent, considering all that the District 
does for the citizen, his wife and children. 
As long as the citizen lives he has the full 
use and benefit of his capital. The difference 
is that he cannot dispose of it at his death to 
his wife or children. But in a State which 
provides so well for these, no citizen need 
give any concern about their welfare in case 
of his decease. 



CHAPTER XX 

THE KINGDOM OP HEAVEN AND THE 
NEW EEA 

When in Equaland, my attention was 
called by different citizens of the country to 
an interesting claim or theory as to the origin 
of its economic order. The commission au- 
thorized by Parliament is supposed to have 
formulated the system. This commission 
has been greatly extolled for the great work 
it accomplished in giving to the world some- 
thing entirely new. There was nothing like 
it in force or operation in any known country. 
There were no guides or precedents in history. 

The same thing has been said of the 
American Constitution. The Constitutional 
Convention had no guides or precedents to 
follow. The Republics of Rome and Greece 
had existed under entirely different condi- 
tions and were no criterion. The Republics 
of Venice and Holland were in a very pre- 



4 



THE KINGDOM OF HEAVEN 233 

carious state, and could not be taken as 
models. Swiss institutions were mentioned 
only to be criticized. *' And yet," says 
Bryce, '^ there is little in the American Con- 
stitution that is new. There is much that 
is as old as Magna Charta.'' Whence, then, 
was the American Constitution obtained? 
" It was a growth, an adaptation of English 
Constitutional law." Likewise it has been 
said of the economic system of Equaland : 
" There is little in it that is new, but there 
is much that is as old as Christianity. It 
was a growth and development of Christian 
principles and their adaptation to modern 
industrial life." 

In fact, the claim is made that Jesus is 
the original source of the system and that 
the basic principles upon which it is founded 
are set forth in the gospels. 

On the other hand, there are those who 
claim that no specific social system is to be 
found in the teachings of Jesus ; that Jesus 
was not a social reformer of the modern type ; 
that sociology is a recent science and that 



234 STATE SOCIALISM 

modern political economy was unknown in 
His day. In answer to this, it is contended 
that if modern sociology or political econ- 
omy were unknown in Jesus^ time, still 
there existed the great differences between 
the rich and the poor, the question of prop- 
erty and the question of wages, the same as 
in modern life. The differences between 
rich and poor were before Jesus as live and 
pressing questions, as they are before us to- 
day. Riches and poverty were problems He 
dealt with, and it was not necessarv for Him 
to know or have in contemplation modern 
socialistic or economic science to do so. He 
could set forth fundamental and basic prin- 
ciples as regards the rich and poor, property 
and wages, — principles that are true and 
applicable whatever the superstructure of 
society above them, whether the primitive 
conditions of His day Or the complex struc- 
ture of modern society. Just as there are cer- 
tain fundamental principles relating to per- 
sonal rights and liberties which are as true 
to-day as they were in the time of Magna 



THE KINGDOM OF HEAVEN 235 

Charta and the forming of the American 
Constitution, though the condition of society 
is vastly different in these different peri- 
ods. Fundamental and basic principles are 
the same irrespective of time or conditions. 

The Kingdom of Heaven was a subject 
constantly referred to by Jesus in His dis- 
cussions with His disciples and fellow men. 
It is a theme to which He repeatedly re- 
ferred and which He took great pains to 
elaborate and describe. Several of His best 
and most noted parables were given to illus- 
trate and describe it. The word " heaven " 
refers to a place somewhere among the vast 
expanse of stars, but the phrase " the king- 
dom of heaven ^' refers to a regime, or era, to be 
established upon earth. Jesus has so stated 
and described it. While the Kingdom of 
Heaven is primarily a moral and spiritual 
condition having to do with man's relation 
to God, it also has a social phase or aspect 
which has to do with man's relation to man. 
In describing the social phase of the King- 
dom, Jesus set forth certain fundamental 



236 STATE SOCIALISM 

principles. While it may be true that no 
specific social system is described by Jesus, 
nevertheless He set forth certain fundamen- 
tal principles which are the basis of, and 
which form the chief characteristics of, the 
social order above described. 

The first of these principles relates to 
wages. It has been observed in the eco- 
nomic system of Equaland that the State or 
District pays each citizen an equal wage. It 
is asserted that the parable of the vineyard 
clearly and distinctly sets forth this prin- 
ciple. 

In this parable (St. Matthew 20: 1-16) 
the Kingdom of Heaven is likened unto a 
householder who went to the market-place 
to hire laborers to work in his vineyard. 
Some were engaged early in the morning, 
some at the sixth, some at the ninth, and 
still others at the eleventh hour of the day. 
" And about the eleventh hour he went out, 
and found others standing ; and he saith 
unto them, Why stand ye here all the day 
idle ? They say unto him, Because no man 



THE KINGDOM OF HEAVEN 237 

hath hired us. He saith unto them, Go ye 
also into the vineyard. And when even 
was come, the lord of the vineyard saith 
unto his steward. Call the laborers, and pay 
them their hire, beginning from the last 
unto the first. And when they came that 
were hired about the eleventh hour, they 
received every man a penny. And when 
the first came they supposed that they would 
receive more ; and they likewise received 
every man a penny. And when they re- 
ceived it, they murmured against the house- 
holder, saying, These last have spent but 
one hour, and thou hast made them equal 
unto us, which have borne the burden of the 
day and the scorching heat. But he an- 
swered and said unto them, Friend, I do 
thee no wrong : didst not thou agree with 
me for a penny? Take up that which is 
thine, and go thy way ; it is my will to give 
unto this last, even as unto thee.^' 

In the foregoing words Jesus sets forth the 
wage system of the Kingdom of Heaven. 
Each laborer is paid the same or an equal 



238 STATE SOCIALISM 

wage, a penny each, though the services of 
some, who worked the whole day, were more 
vahiable than those who worked only a part 
of the day. 

The lord of the vineyard represents the 
community, the state, or district, and all 
earning or working citizens being employees 
of the state or district are to be paid the same 
or an equal wage, though the services of some 
are worth more to the district than those of 
others. 

There is an important qualification as re- 
gards those employed at the eleventh hour. 
The question is asked, '' Why stand ye here 
all the day idle ? '' The answer is, '^ Because 
no man hath hired us." These men stood 
watching and waiting for work all day. 
They were willing and ready to work at any 
time any one would hire them. That they 
were not only willing to work but exceed- 
ingly anxious to do so is shown by the fact 
that they remained in the market-place un- 
til the eleventh hour looking for work. 
Many men seeking employment will try for 



THE KINGDOM OF HEAVEN 239 

an hour or two and then give up for the day. 
But these men remained until the eleventh 
hour. The lord of the vineyard should have 
hired these laborers earlier in the day. They 
were in the market-place wanting work when 
he hired the others. He must have either 
overlooked them intentionally or made a 
mistake as to the amount of work to be done. 
In either event, for the one hour's work he 
paid them the same or an equal wage with 
the others. This has been interpreted to 
mean that the laborer, the employee of the 
district, must be willing and ready to work at 
all times ; that if he fails to find employment 
all or part of the time himself, the district 
should find it for him ; and if it neglects, 
fails, or refuses to do so, he should receive the 
equal wage. 

Another great economic as well as moral 
principle is set forth in the parable of the 
talents (St. Matthew 25 : 14-30). '' For it is 
as when a man going into another country 
called his own servants, and delivered unto 
them his goods. And unto one he gave five 



240 STATE SOCIALISM 

talents, to another two, to another one ; to 
each according to his several ability ; and he 
went on his journey/' He that received five 
talents gained five other talents, and he that 
received two, gained two more. But the serv- 
ant who received one talent digged in the 
earth and hid his lord's money. Those who 
made use of their talents were suitably com- 
mended and rewarded while the one who hid 
his lord's money is severely condemned, and 
the talent taken from him. ** Take ye away 
therefore the talent from him, and give it unto 
him that hath ten talents. For unto every 
one that hath shall be given, and he shall 
have abundance : but from him that hath not, 
even that which he hath shall be taken 
away." 

This parable contains a great moral truth 
or principle. A man's powers, capacity, or 
ability increases or shrinks according to use. 
It also contains a great economic truth or 
principle. The lord followed this in entrust- 
ing or distributing his property among his 
servants according to their several ability. 



THE KINGDOM OF HEAVEN 241 

This was the best method he could have taken 
for both conserving and increasing his wealth. 

The lord in this parable also represents the 
community, the state or district and the serv- 
ants the citizens. These were in fact more 
than mere servants. They were trustees or 
agents of the lord, for they were entrusted with 
his money for trading or business purposes. 

It has been observed that in the system of 
property tenure of Equaland, as above set 
forth, each citizen is given the use of property 
for home, personal, and business purposes in 
accordance with his earnings. And as the 
amount of a citizen's earnings is indicative 
and proof as to his ability, the same eco- 
nomic system underlies this system as that set 
forth in the parable,— to each according to 
his several ability. The system of awards by 
which a property or business is awarded upon 
a competitive basis to that one of the compet- 
itors who has exceeded the others, and 
thereby proved himself to possess the most 
ability, is also in harmony with this prin- 
ciple. 



\ > 



242 STATE SOCIALISM 

That such a system is best for the state, or 
the community as a whole, is self-evident, 
for if the property of a state or community 
is in the hands of those citizens who possess 
the most ability, and according to ability as 
proved and demonstrated by earnings, its 
property will be the best conserved and in- 
creased, and the community as a whole fare 
the best. It is also best for the citizen, for 
the amount of property entrusted to each 
citizen, being dependent upon his ability as 
proved by earnings, is a constant incentive 
for him to put forth his best efforts and en- 
deavors. In those countries in which pri- 
vate ownership obtains, many a man has 
dissipated his ability simply because life has 
been made too easy by a comfortable inherit- 
ance. 

The parable of the talents has been cited 
as sanctioning or upholding the system of 
private ownership, and the increase of wealth 
by the property-holding class. The increase 
of wealth is undoubtedly sanctioned by this 
parable. It is also approved and encouraged 



THE KINGDOM OF HEAVEN 243 

in Equalaod, for the more successful a citi- 
zen is, and the more he adds to and increases 
the capital or property entrusted to his care, 
the more beneficial he is to the community 
or district for which he acts as trustee. But 
the system of private ownership and inherit- 
ance as existing in different countries can 
find no basis for its justification in this par- 
able. The lord entrusted his property to his 
servants, " to each according to his several 
ability." All his servants were called ; each 
one was given an opportunity. While the 
servants were given the widest possible lat- 
itude, no instructions nor directions being 
given, and were perfectly free to act for them- 
selves, it is to be noticed that the lord at no 
time relinquished his ownership of the prop- 
erty. In endeavoring to justify himself, the 
unprofitable servant said, '' and I was afraid, 
and went away and hid thy talent in the 
earth : lo, thou hast thine own." The lord 
thereupon exercised his right of ownership 
by taking the talent away from this servant 
and giving it to the one with ten talents. 



244 STATE SOCIALISM 

But was this one talent given to the latter 
servant absolutely and unconditionally, to be 
his for all time and pass to his heirs at his 
decease? Was he given absolute and un- 
conditional ownership in the other ten 
talents possessed by him? It is not so 
stated, neither is it to be inferred. All that 
any of the servants possessed belonged to 
the lord to be held by them as ^a trust. To 
have given them absolute ownership with 
the right to pass the property to their heirs 
would have at once destroyed and nullified 
one of the chief principles of the parable, — 
to each according to his ability. For at 
the death of the original servants, their heirs 
would have become holders of the property, 
not according to ability, but for the sole 
reason that they were the heirs of the origi- 
nal holders. The ability of the heirs is 
likely to be entirely different from that of 
the original servants. It is thus self-evident 
that the right of private ownership and in- 
heritance is not sanctioned by this parable 
and that it is contrary to its spirit. The 



THE KINGDOM OF HEAVEN 245 

principle, to each according to his ability, 
can be preserved and maintained from one 
generation to another only when the property 
held by each citizen reverts at his death 
to the original owner, the community, to be 
awarded other citizens according to ability 
by some such system as that in vogue in 
Equaland. 

From this parable, then, is drawn the prin- 
ciple of common ownership ; that all citizens 
are, or should be, the servants, trustees, 
agents, or employees of the common owner, 
—the lord, or district ; that the property or 
wealth of the district should be entrusted to 
its citizens according to their ability ; that 
all citizens should be given a share, or op- 
portunity, according to ability ; that the citi- 
zen should be given the widest possible 
latitude and freedom in his use of the dis- 
trict's wealth, — a freedom that to all intents 
and purposes amounts to and is the equiv- 
alent of individual ownership, the only re- 
quirement being that the citizen shall render 
an account. 



CHAPTER XXI 

THE TEACHIlsrGS OF CHRIST AND THE 
APOSTLES^ EXAMPLE 

It is apparent that the disciples under- 
stood that the Kingdom of Heaven was to 
be established upon earth ; that a common 
ownership, and ** to each according to his 
needs," was to be the economic order of this 
kingdom. This is apparent from the fact 
that the original apostles established a com- 
munistic order among themselves and fol- 
lowers immediately after Pentecost. *' And 
all that believed were together, and had all 
things common. . . . For neither was 
there among them any that lacked ; for as 
many as were possessors of lands or houses 
sold them and brought the prices of the 
things that were sold, and laid them at the 
apostles' feet : and distribution was made 
unto each, according as any one had need " 
(Acts 2: 44; 4:34-35). 



THE TEACHINGS OF CHRIST 247 

In this communistic society were eleven of 
the original apostles. Whence did they ob- 
tain the communistic principle? It was 
derived from the Master Himself. It was the 
kind of life they had lived under Him. 
While He was with them they carried a 
common purse, and there was none among 
them that lacked. When collected together 
again after Pentecost, why did the apostles 
establish a communistic society ? To show 
in their own lives, and to give the world an 
example of, what the full and complete King- 
dom of Heaven is to be. There is a spiritual 
side of this kingdom. There is also an eco- 
nomic side. Christ so taught them, and be- 
ing so fresh from Pentecost, they were but 
attempting to live out His teachings and show 
the kingdom in its completeness. 

Much has been made of the fact that no 
attempt was made to establish a communistic 
society in any of the other early churches, 
and that the experiment at Jerusalem ended 
in failure. None of the other churches con- 
tained eleven of the original apostles who 



248 STATE SOCIALISM 

understood the kingdom as no others did. 
Neither is the failure of the attempt at Jeru- 
salem an argument against the desirability 
and advisability of the communistic principle. 
At the time of the formation of the American 
Constitution all previous attempts to establish 
a republican form of government had failed. 
And there are countries in the world to-day 
in which this form of government is imprac- 
ticable and others in which it is established 
but is a failure. So it may be said of the 
communistic society. The failure of the 
attempt at Jerusalem is no argument against 
its desirability or practicability. The world 
was not ready for it at that time. It was not 
then capable of establishing and maintaining 
a communistic order. In fact, not until the 
twentieth century and the great progress and 
advancement that came with it, was the 
world capable of this higher and more desir- 
able form of society. 

It has been said of the communistic society 
at Jerusalem that it was not communism in 
any proper sense of the word ; that no one 



THE TEACHINGS OF CHRIST 249 

was required to produce for the common good, 
as in all communistic societies. " There was 
no common economic production. The pos- 
sibility of a higher communistic ownership 
in the instruments of production had not yet 
arisen above the horizon of common thought. 
Individual and family production were the 
only kind commonly known. Thus the first 
Christians produced separately and consumed 
in common." 

It has been observed in Equaland that 
while the title of all property is in the dis- 
trict, its citizens are given the use of its prop- 
erty, including the instruments of production, 
in accordance with earnings or ability. Each 
citizen has complete control of what property 
he possesses and exercises all the rights of 
ownership. For all practical purposes, so far 
as the citizen himself is concerned, individual 
ownership exists, but his property rights can- 
not be transferred to his heirs. There is no 
common production any more than in any 
other country. The district itself is engaged 
in no business, neither does it undertake any 



250 STATE SOCIALISM 

production. The instruments of production 
are in the hands of individual citizens, cor- 
porations and companies. Each citizen, cor- 
poration, or company acts for itself. The 
district makes no attempt to control their ac- 
tivities or to dictate their policies. They 
may be in competition with each other, or co- 
operating with each other. No attempt is 
made to control or to change the methods of 
production. These are left to natural eco- 
nomic laws, and are the same as found in 
other countries. Hence, the economic system 
established by the early Christians in the 
primitive methods of those days, when there 
was only individual and family production, 
was the same as that established in the com- 
plex and highly advanced methods of modern 
industry in Equaland, — common consump- 
tion but separate production. 

This is both communism and individual- 
ism. The equal wage, distribution according 
to needs, and the reversion of all property 
upon the death of the citizen to the district 
to be awarded others in accordance with abil- 



THE TEACHINGS OF CHRIST 251 

ity, is communistic. Exercising the rights 
of private ownership over the means of pro- 
duction and other property entrusted to the 
citizen during his lifetime, is individualistic. 

An equal wage, a common ownership with 
individual holdings according to ability, 
therefore, are the fundamental principles set 
forth by Jesus in the parables of the vineyard 
and of the talents. A common ownership 
and a distribution according to needs is the 
economic order attempted by the disciples. 
Nothing is said regarding the disposition of 
property for productive purposes among the 
disciples. They were expecting the near re- 
turn of their Lord and for this reason prob- 
ably undertook no production. 

But from the teachings of Jesus and the 
example of the apostles it is maintained that 
the economic phase of the Kingdom of 
Heaven is clearly and distinctly set forth. 
This kingdom is to be established upon 
earth. It is here now in the hearts of men. 
But some day it is to be established in its 
fullness and completeness, covering the 



252 STATE SOCIALISM 

whole earth and reigning in the hearts of 
all men. The establishment of the king- 
dom upon earth was one of the great desires 
of the Lord. It was a theme constantly in 
His mind and which He always kept before 
His disciples. After the salutation to the 
Father, it is the first request or petition in 
the Lord's prayer. *' Our Father which art 
in heaven, Hallowed be thy name. Thy 
kingdom come. Thy will be done, as in 
heaven, so on earth." 

** Thy kingdom come." The position of 
this petition in the Lord's prayer shows its 
importance in the mind of Jesus, and having 
given this prayer to be the prayer of His dis- 
ciples and followers everywhere, it should be 
the first and greatest desire of their hearts as it 
was that of the Master. *' When ye pray, say 
. . . Thy kingdom come." This is always 
to be the first request to ask of the Father, no 
matter what the circumstances or the situation. 

Few Christians understand or comprehend 
what the Kingdom of Heaven is. To many, 
so far as it relates to this world, it is a far- 



THE TEACHINGS OF CHRIST 253 

off, impracticable and visionary state, un- 
suited to modern life and present conditions. 
Bat it is modern life with the advancement 
made in business and industrial methods 
that has brought it near and made its eco- 
nomic side possible and practical. 

If all Christians had a clear comprehen- 
sion of what the kingdom really is, the 
prayer, ^' Thy kingdom come," would not be 
an empty and meaningless petition upon 
their lips. It would be the earnest and sin- 
cere desire of their hearts, and would be 
supplemented by their efforts to bring the 
kingdom to pass. If the kingdom as de- 
scribed by Jesus possesses an economic side, 
or if a certain economic system is in har- 
mony with the teachings of Jesus, then all 
true Christians should put forth their efforts 
toward the establishment of that economic 
order. God accomplishes His purposes 
through the instrumentality of man. Man 
is the medium through which God works. 
Prayer has little effect unless supplemented 
by works. 



254 STATE SOCIALISM 

The establishment of a better and more 
just economic order by Christian nations, — 
one in harmony with the teachings of Jesus 
which would correct the wrongs and injus- 
tices of the present system, — would prepare 
the way for the coming of the Lord Himself. 
The present system is too full of wrong, in- 
justice, poverty, and suffering to be the 
order of the coming kingdom. The Lord 
of that kingdom will come suddenly. No 
man knoweth when. " For as the lightning 
cometh forth from the east, and is seen unto 
the west; so shall be the coming of the 
Son of man.'^ The spirit of Christ does 
come thus suddenly and powerfully into the 
hearts of men, and some day His spirit will 
strike as lightning throughout all the earth, 
when He will come again in person. 

But will the world be prepared for His 
coming? Will it be wholly ignorant and 
inexperienced as to the economic order of 
the new kingdom ? A new economic order 
cannot be established in a day, a month, or 
a year, and requires years for its develop- 



THE TEACHINGS OF CHRIST 255 

ment and perfection. There is a class of 
true and devout Christians who earnestly 
desire and expect the near coming of the 
Lord, but who make no effort to right exist- 
ing wrongs, or to bring about the kingdom. 
They say the Lord Himself will right all 
wrongs and establish the new order when He 
comes. As to what the new economic order 
is to be, they give themselves little concern, 
saying Jesus will also take care of this when 
He comes. But Christ has nowhere said or 
promised that a further revelation is to be 
given in this respect. His teachings along 
these lines are clear and distinct. He has 
already given all that is needed. It is the 
duty of Christians to make use of what light 
they have. They cannot ignore what Jesus 
has already taught, and expect something 
more or different. Jesus has set forth the 
great fundamental principles of a new order 
of things. These principles are an equal 
wage, a property tenure according to ability, 
and a distribution according to needs. 

It is certainly time, now that prophecy has 



256 STATE SOCIALISM 

been fulfilled by the great wars that were to 
indicate the approaching end of the present 
age, for Christian people to give serious con- 
sideration to the social principles of Jesus, 
and to be ready for the establishment of a 
more beneficent economic order, one in har- 
mony with the teachings of Jesus. They can 
thus make ready and prepare the way in this 
respect for His coming. 

Just how or when the kingdom will be 
established, no one knows. Whether there 
will be a natural growth and development 
following the war, as most of us hope, or 
whether a period of anarchy will first ensue, 
as some predict, cannot be told. But in 
either event, Christians should be ready and 
prepared, and willing to do all within their 
power to bring about a new regime. What 
has been described in the preceding pages is 
but an example, or indication, of what the 
new order may be, and is merely intended to 
show the possibilities of a more benign dis- 
pensation based upon the three principles 
above set forth. 



CHAPTER XXII 

MODEEN BUSINESS METHODS AND THE 
NEW OEDEE 

Having shown what the State Socialism 
of Equaland is, we will now endeavor to ex- 
plain the methods by which it is operated 
and maintained. What is the means or 
mechanism by which the system is operated 
in actual practice? This is a question in 
which the traveler from other countries is 
generally much interested, for upon it de- 
pends the success of the system. We have 
seen that each citizen, being the trustee, agent, 
or employee of the District, is required to 
render an account of his earnings to the Dis- 
trict. By what means does the District re- 
quire the citizen to account to it, and how 
does it know, when rendered, that the account 
is a true one ? 

In the first place, it may be said, both as 



258 STATE SOCIALISM 

regards the economic system itself and the 
methods by which it is operated and main- 
tained, that the Parliamentary commission 
which devised it formulated very little that 
is new. It simply made an enlarged use of 
that which had been well tried and tested, 
and the actual workings of which could be 
studied from actual experience in the leading 
countries of the world. 

The commission called to its assistance the 
best and most noted business experts of differ- 
ent countries. There were several well- 
known merchants and manufacturers from 
America, — men who were the masters of busi- 
ness on a large scale, employers of thousands 
of workers. There were also business experts, 
men scarcely known to the general public, 
but who were masters and inventors of busi- 
ness systems and methods. Why was this 
class of men called ? Because the mechanism 
by which such an economic system could be 
operated was primarily and essentially a busi- 
ness proposition for the solution of which men 
experienced in the conduct of business on a 



MODERN BUSINESS METHODS 259 

large scale were the best qualified. A com- 
parison between a District and a corporation 
will illustrate this. 

A great corporation may have millions in- 
vested in its business ; it may have plants, 
warehouses, and stations throughout the 
world ; it may have a vast amount of personal 
property, machinery, railroads, steamships, 
mines, wagons, horses, stables, automobiles, 
trucks, cars, tanks, etc. It may have from 
10,000 to 50,000 employees. Though so vast, 
with ramifications so intricate that no single 
mind can grasp it in its entirety, it works 
harmoniously and smoothly as a unit. The 
corporation knows the exact condition at any 
time of every plant and warehouse, and of 
all its machinery and personal property. 
It has an exact record of everything its 
agents and representatives are doing. It 
knows the amount of product of each plant, 
the cost of each item manufactured to 
a fraction of a cent, the amount of goods in 
each warehouse or station, the amount of sales 
of each one of its thousands of salesmen, the 



260 STATE SOCIALISM 

number of hours of work and the earnings or 
wages paid each employee. 

Each District as a unit is in a sense a 
corporation. All property and business is 
owned in common, managed by citizens who 
are trustees, with wages and allotments paid 
and granted to each according to earnings. 
It may have a population of from 25,000 to 
200,000 or more, with from 6,000 to 50,000 
or more workers. Unlike the great corpora- 
tion, no business is conducted by the District 
as a whole. While all business is in the 
hands of citizens as agents or trustees, they 
are independent of the District as to the 
manner and method of conducting business, 
and may be in rivalry and competition with 
each other. The great business corporation 
must have an exact, itemized record of every 
transaction connected with its business each 
day, though there may be 50,000 or 100,000 
such transactions in a single day. But such 
exact and multitudinous knowledge of every 
detail is not necessary to the District, because 
it does not direct and control as a unit the 



MODERN BUSINESS METHODS 261 

business within its borders as does a corpora- 
tion. The one thing of essential importance 
for the District to know is the earnings of 
each working citizen. It must know the 
amount of salary or wages paid each em- 
ployee, the earnings of every firm, corpora- 
tion, or individual engaged in any kind of 
business, as well as the earnings of every 
agriculturist, and every worker of every 
kind within its territory. 

How can it know this and have exact and 
reliable information upon which it can de- 
pend? How does the great corporation 
know its earnings as a whole, as well as the 
earnings of each individual plant, station, 
and warehouse, the cost and expense of every 
item of its vast business, as well as the 
amount each plant, warehouse, and station, 
and each individual agent or employee con- 
tributes to the whole earnings ? 

The principle by which such vast interests 
are directed and controlled is that every em- 
ployee of the corporation shall make a record 
of all particulars of each transaction at the 



262 STATE SOCIALISM 

time when the transaction takes place. In 
every sale by an employee, no matter how 
large or small the amount, a written record 
is made of the sale generally in triplicate by 
means of carbon paper, one copy of which 
goes to the purchaser, one to the corporation, 
and one remains with the one making the 
sale. Everything starts from and is based 
upon this itemized ** bill of sale." So by 
means of duplicating, or triplicating, or mani- 
fold forms, a record is made at the time it 
takes place of every item of its great business. 
The same principle is made use of in the 
great department store. The big store is in 
fact thirty or forty stores iii one. Its in- 
voice may show millions of dollars of stock ; 
it may have from 6,000 to 8,000 employees ; 
it often makes as high as 50,000 sales a day. 
How does it keep track of its great business, 
know the amount of stock in the stock 
rooms, in each department, the sales each 
day in each department, and by each sales- 
man ? It has a means of knowing not only 
these, but every act and every transaction. 



MODERN BUSINESS METHODS 263 

its exact nature and character, of every one 
of its thousands of employees, and conducts 
its great business more successfully and with 
less loss than the individual merchant who 
uses less thorough and systematic methods. 
The principle is the same as that employed 
by the large corporation ; a record must be 
made of all the particulars of each transac- 
tion at the time it takes place. Each day a 
duplicate or triplicate of each one of these 
records finds its way to the Auditing De- 
partment, where they are scrutinized, ana- 
lyzed, classified, tabulated and summarized, 
compared as to the amount of cash, charge, 
and C. O. D. sales, and the whole made to 
balance to a cent. In fact there must be a 
balance before the next day's business can be 
started. Here, also, everything starts from, 
and the elaborate system by which the great 
store is conducted is based upon, the familiar 
" bill of sale," a carbon copy of which is 
given by the clerk to the customer, itemizing 
and stating exactly the particulars of every 
purchase. 



264 STATE SOCIALISM 

In Equaland the same principle has been 
adopted and applied to every kind of busi- 
ness, whether it be a merchant selling goods 
in a store or a farmer delivering products to 
a warehouse, an exact record must be made 
of each transaction at the time it takes place. 
As in the case of the big store or corporation 
these records are made in triplicate by 
means of handy, convenient, and easily 
manipulated, triplicating sales books or 
pads. This " bill of sale," required by law 
and demanded by all citizens in every trans- 
action, is the starting point, the basis upon 
which rests the whole superstructure of the 
system by means of which the earnings of 
every citizen in the District conducting an 
independent business is ascertained. 

The growth and development within the 
last fifty years of the thorough and elaborate 
business systems by means of which great 
business enterprises, whether local, state, or 
inter-state, are successfully conducted and 
controlled, have furnished the mechanism by 
which complete State Socialism has been 



MODERN BUSINESS METHODS 265 

made possible and practicable. The system 
of modern business is one of the greatest 
and most valuable inventions of the pres- 
ent age. Not the product of any one mind, 
but worked out and perfected as conditions 
arose by hundreds of brilliant and practical 
men, it has not been heralded to the world 
like the noted individual inventions, nor 
have its importance and economic value 
been generally appreciated and understood. 
Its growth and development have caused the 
world to progress more toward a more just 
economic system within the last fifty years 
than in all the rest of the time since the death 
of Christ. 



CHAPTER XXIII 

ENLAEGED USE OF MODERN METHODS 

We have stated the principle upon which 
the economic system of Equaland is based. 
Let us now see what advantage and value the 
principle has and what adaptation has been 
made of it. In the first place, business upon 
a large scale is a distinct advantage and is 
conducive to the maintenance of State So- 
cialism. To illustrate, take a manufactur- 
ing plant employing 8,000 or 10,000 people. 
The plant is conducted upon the thor- 
ough, systematic business methods briefly 
explained above. It must keep an exact rec- 
ord of everything connected with its busi- 
ness. This record is necessary for the con- 
duct, management, and control of its business. 
It cannot be intelligently and successfully 
directed without it. The manager, board of 
directors, and stockholders can step into the 



MODERN METHODS 267 

Auditing Department at any time and ascer- 
tain what the company is doing in every 
department, the amount of output produced 
within a certain period, the amount of raw 
material purchased, the amount of sales, ex- 
penses, wages paid, and the earnings or profits 
to be paid as dividends. The company keeps 
a record of the amount of salary or wages 
paid to each one of its 8,000 or 10,000 em- 
ployees. It also keeps a record of the num- 
ber of hours' work performed by each. 

Now it being necessary for the corporation 
to keep an exact record of every item of its 
business, without which the management 
cannot successfully direct and control it, and 
from which the stockholder can obtain any 
information desired concerning the company, 
so the District obtains from the same records 
the earnings of the company and the dividend 
paid each stockholder. It also depends upon 
these records as to the salary or wages paid 
each employee and the number of hours' labor 
performed by each. 

The same is true of the department store 



268 STATE SOCIALISM 

with its 50 to 10,000 employees. The exact 
records kept by the Auditing Department of 
the store of every single item and transaction 
connected with the business relieve the Dis- 
trict from the necessity of keeping such rec- 
ords. It depends upon the records of the 
store and obtains from it, whenever desired, 
any information it may want as to the num- 
ber of employees, wages paid each, number of 
hours of work, salaries of managers, earnings 
to the firm, or dividends paid stockholders. 
The same is true as to what is termed a chain 
of stores, a number of stores located in different 
parts of a city or District, under the control 
and direction of one management, or owned 
by one company with a single or central 
auditing department. 

Thus it is easily seen that business con- 
ducted on a large scale, or large enough to 
justify and require an auditing department, is 
an advantage, and is conducive to the main- 
tenance of a system of complete State Social- 
ism. If all business and employments of a 
District could be conducted upon a large 



MODERN METHODS 269 

scale by companies, corporations, or combina- 
tions, the operation of State Socialism would 
be a simple matter. The District would then 
have but comparatively few large companies 
from which to receive reports of the earnings 
and labor hours of its citizens. 

It must be admitted that there are many 
advantages in conducting business upon a 
large scale. The power of concentrated cap- 
ital is great and there are many economies 
that can be effected over those in a small 
business. Indeed, the advantage of large 
business to the maintenance of State So- 
cialism was so apparent, that at first it 
seemed to the Parliamentary commission 
that all business of Equaland would have 
to be conducted by the same methods, — by 
corporations upon a more or less large scale, 
and that no place could be found for the 
small retail dealer. In fact, in various coun- 
tries of the world, the big store or corpora- 
tion, by m^ans of its economic advantages 
and power of large concentrated capital, had 
made such inroads upon the business of the 



270 STATE SOCIALISM 

small dealer, that it became a serious ques- 
tion whether the small'dealer could hold his 
own against his powerful rivals. 

The only way he could survive and keep 
himself from being extinguished was to 
adopt the same sure and safe modern meth- 
ods that have made success possible for the 
big store and other big concentrations of 
capital. It was also necessary to the mainte- 
nance of a complete system of State Socialism 
that the small dealer adopt the same thor- 
ough, systematic methods. So two problems 
were solved at the same time, and their solu- 
tion was of as great importance for, and as 
necessary to, the individual business man as 
to the State. 

Let us see, now, how the problems were 
solved and examine the workings of the 
system as applied to the small dealer, the 
farmer, and all kinds of business. The 
methods employed by the big store are elab- 
orate and intricate. They are necessarily so 
to cover every detail of the thousands of acts 
and transactions upon the part of all of its 



MODERN METHODS 271 

employees every day. In order to work the 
system, a special set of employees are neces- 
sary who give their entire time to this work 
alone. They constitute what is known as the 
auditing department. Into the auditor's 
hopper pours every detail of the great busi- 
ness in a constant stream, every part of which 
is gone over carefully and audited. In the 
smaller stores of eight or ten departments 
and fifty employees, a single auditor can 
handle the entire business. In the largest 
stores of 8,000 to 10,000 employees, two hun- 
dred or more experts in figures may be re- 
quired in the auditing department. 

A disadvantage of the small store is that 
its business is not large enough to justify the 
services of an auditor, and the manager or 
owner has not the inclination, ability, or time 
necessary to give this work the thorough at- 
tention it requires. This objection has been 
overcome in Equaland by the institution of 
licensed public accountants, or auditors. 
Every business not large enough to justify 
its own auditing department is required by 



272 STATE SOCIALISM 

law to engage the services of, and be audited 
by, a public auditor or firm of auditors, un- 
der which the business is conducted on prac- 
tically the same methods employed in the 
big store. 

This solution of the problem is certainly a 
simple one and presents no extraordinary or 
startlingly new idea. It no doubt originated 
with what is known as a chain of stores, a 
number of stores owned by a single company 
and under one auditing department, methods 
for the successful running of which had been 
worked out and thoroughly tested before 
Equaland was thought of. A number of in- 
dependent dealers employing the services of 
the same auditing firm is little diiFerent from 
a single firm or company owning a number 
of stores run by one auditing department. 
The difference is that the individual dealer is 
his own manager and conducts his business 
according to his own judgment and ability, 
and is not controlled and directed as is the 
head of one of a chain of stores. He buys 
his own stock and sells his own goods ; if he 



MODERN METHODS 273 

is unusually successful the profits are his 
own and do not go to swell those of a com- 
pany of which he would only be an em- 
ployee. Another difference is that though 
the same auditing firm which he employs 
may do the auditing for ten, twenty or thirty 
other stores, the business of all the stores is 
not audited as a whole, but each is separate 
and independent of the others. The small 
dealer thus has the advantages of the same 
system used by the big store or chain of 
stores, at no greater cost in proportion to the 
amount of business transacted ; and by use 
of the same safe and sure methods employed 
by them, he is able to hold his own against 
his powerful rivals. 

An auditing firm of two or more members 
and a few clerks is capable of handling from 
fifteen to twenty stores. There are auditing 
firms of every size, from those consisting of 
a single auditor and a clerk or two in the 
smaller towns, up to those employing one 
hundred and fifty to two hundred in the 
larger cities. 



274 STATE SOCIALISM 

All auditors must have a license from the 
State, and are under the supervision of a 
State Commission which controls the busi- 
ness methods and systems to be followed. 
The system is thus elastic and open to im- 
provement, as better methods are devised or 
invented. 



CHAPTER XXIV 

THE INDIVIDUAL BUSINESS MAN AND 
THE NEW EEA 

The system by which the big store or cor- 
poration is conducted is well known and 
needs no explanation. It has been worked 
out, tried and tested in every detail. But it 
may be interesting to see how the same 
system has been applied to the individual 
dealer. The following general description 
is given to show the value of this system to 
the individual merchant and its use and im- 
portance in maintaining the economic sys- 
tem of Equaland. 

To the auditing firm, the single store or 
individual merchant is the same as a depart- 
ment of a big store. All the business of the 
store is transacted through the auditing firm 
which represents the District, for which the 
merchant is the trustee, and the same thor- 



276 STATE SOCIALISM 

ough business methods are used as in the 
large store or corporation. When the mer- 
chant buys goods he uses a '' Buyer's Mani- 
fold Order Form/' by means of which three 
copies are made of each order of goods 
bought. One copy is retained by the mer- 
chant, one goes to the auditing firm, and the 
third copy, after being scrutinized as to 
errors and approved as to prices by the 
auditing firm, goes to the seller. This is 
required by law in order that the auditing 
firm may have an exact record of every 
purchase by the merchant, and to prevent 
collusion between the merchant and the 
seller. 

The goods are bought, delivered, and 
checked with practically the same thorough, 
systematic methods as are used in the big 
store. An exact record is made of every 
part of each transaction, by means of which 
record the merchant is protected against any 
errors, carelessness, or collusion on the part 
of his employees or the wholesaler ; at the 
same time, the District is protected from 



THE NEW ERA 277 

error, carelessness, or collusion on the part 
of the merchant himself. 

Having purchased the goods, the mer- 
chant now figures carefully and fixes their 
selling price. This is necessary in order 
that he may be sure of covering overhead 
expenses and profits. A duplicating book 
is used for this purpose, and the goods 
marked in accordance with the record 
made in this book, one copy of which 
goes to the auditing firm. The merchant is 
now charged with the net cost of his com- 
plete stock of goods, and also with their 
selling price. While the merchant himself 
is so charged, all his employees are likewise 
charged and held responsible for a certain 
price. No goods through error, carelessness, 
or collusion can be sold at less than regular 
prices by any of his employees without its 
being detected ; for the auditing firm care- 
fully scrutinizes all sales checks of goods 
sold each day to see that prices correspond 
with regular selling prices. 

If for any reason the merchant wishes to 



278 STATE SOCIALISM 

cut prices, he must have an accurate record 
between the regular and the bargain price. 
The merchant is perfectly free to fix what- 
ever price he desires, and to change prices 
whenever he sees fit. But all sales must be 
in accordance with prices fixed in advance 
of which the auditing firm has been fur- 
nished a record. This is only good business 
and is necessary in order to balance his 
books at the end of the year. Furthermore, 
it protects the merchant against any col- 
lusion, error, or carelessness on the part of 
his employees, and at the same time protects 
the District as against the merchant. 

It is very important that every merchant 
ascertain carefully the total cost of doing 
business. In this is included such items as 
light, heat, water, gas, delivery, clerk hire, 
postage, delinquent accounts, insurance, rent, 
advertising, interest, etc., commonly known 
as overhead expense. The merchant care- 
fully determines in advance the total amount 
of his overhead expense. As the expense 
occurs, both he and the auditing firm keep an 



THE NEW ERA 279 

accurate record of every item by means of a 
triplicating expense account book. When- 
ever he pays out anything or incurs a debt 
which belongs to overhead expense, an 
itemized record is made of all particulars, to 
whom paid, how much, and for what. One 
copy goes to the auditing firm. Thus, if 
money is paid out of the cash register or by 
check on his bank account, it is properly ac- 
counted for. There cannot be a balance of 
either one unless all copies of bills of money 
paid are turned over to the accounting firm. 

If the merchant does not pay cash at the 
time, he makes an itemized record of the 
transaction, marking it " charge." Two cop- 
ies are delivered to the creditor and one is 
retained by the merchant. The creditor 
takes or sends one copy to the auditing firm 
which is necessary in order to become a legal 
charge against the merchant. It will thus 
be seen that there is little opportunity for the 
merchant to falsify or conceal the amount of 
his overhead expense. 

Can the merchant, through collusion, pay 



280 STATE SOCIALISM 

more than the true amount, charge it to ex- 
pense account, and afterward receive a re- 
bate from the payee ? If he is dealing with 
another merchant, firm, or company, it too 
is under an auditing firm and all money or 
payments received must be accounted for. 
If he is paying an individual workman, pay- 
ment is made to the Sub-district in which the 
workman resides, which must be properly 
receipted and accounted for by the workman. 
We have now come to the selling of the 
goods. It has been stated that an itemized 
record of every sale must be made in tripli- 
cate at the time of the sale. This record 
shows the exact character of each sale, the 
kind and amount of goods purchased, the 
price paid, whether cash, charge, or C. O. D., 
and whether to be delivered or taken. All 
this is written in the little sales book or pad, 
in the hands of every clerk, and familiar to 
the customers of all the large and best stores 
everywhere. The triplicating system had 
been perfected and adopted in other countries 
as being the best and most advantageous 



THE NEW ERA 281 

from a business standpoint. So what is uni- 
versally required in this country is nothing 
more than what had already been proved to 
be good business in other countries. 

By the use of the triplicate, one carbon 
copy is retained in the book, and another 
delivered to the customer. The third copy 
goes to the accounting firm together with all 
the sales checks of each day, where they are 
carefully scrutinized, analyzed, tabulated and 
summarized. The charge sales are properly 
entered ; the total amount of charge sales 
for the day is ascertained, the total cash sales, 
the total of both charge and cash, and the 
total sales by each clerk. A comparison is 
made with the amount of cash registered, 
and the amount of charge sales, and the 
whole must be made to balance to a cent. 
Every sales check must be accounted for. If 
one is missing or has been lost, the day's 
business cannot be balanced. 

Once or twice a day an employee of the 
accounting firm calls upon the merchant to 
collect the carbon copies of all transactions 



282 STATE SOCIALISM 

for the day, examines the record of the cash 
register, and furnishes the merchant with an 
itemized summary of the previous day's busi- 
ness. In case the merchant has not previously 
telephoned or sent for them, the clerk may 
leave at this time the auditing supplies needed, 
such as sales books, order books, etc. All 
auditing supplies are furnished and handled 
only by licensed auditing firms. Each firm 
has its sales checks made of specially prepared 
paper which contains the firm's water-mark. 
They also have a certain tint and are printed 
with a safety ink which reveals instantly 
any change, alteration, or substitution which 
might be attempted in the writing. Another 
safeguard is that the sales book is so made 
that the writing on the carbon copy which 
goes to the auditing firm is on the back and 
in reverse, so that it cannot be changed with- 
out detection. Each sales book, or pad, con- 
tains from fifty to one hundred and fifty 
checks, serially numbered. Upon delivery 
to the clerk, a record is made of the first and 
last number, and each sales check must be 



THE NEW ERA 283 

accounted for by the clerk. This is a protec- 
tion to the merchant as against the clerk, and 
at the same time, the merchant being held 
accountable for the sales checks of all the 
clerks, it is a protection to the District as 
against the merchant. 

By the above means the auditing firm ob- 
tains a full, complete and exact record of the 
merchant's business. Like the manager, di- 
rector, or stockholder of the big store, the 
merchant can go to the auditing firm at any 
time, and find out the exact condition of 
every part of his business. Exact knowledge 
is necessary to the successful conduct of any 
business. The auditing firm furnishes him 
this knowledge. Furthermore, it gives him 
counsel and assistance as business experts. 
If the profits are not what they should be, or 
if the overhead expense is too large or not 
correctly estimated, or if there are unknown 
losses and leaks, the auditing firm will assist 
him in discovering the cause and devise a 
way of preventing them. If he is buying or 
carrying too large a stock of any kind of 



284 STATE SOCIALISM 

goods, if he is carrying too large a credit ac- 
count, if he is giving credit where he should 
not, or if there are accounts that should be 
collected, the auditing firm will so advise 
him. 

In fact, thorough systematic methods cover 
every detail of the merchant's business, the 
same safe and sure methods which make the 
big store a success. In Equaland the indi- 
vidual merchant is more successful and better 
able to hold his own against his big rivals 
than in any other part of the world. Busi- 
ness failures are less here than elsewhere, and 
there are not the enormous losses from this 
cause there are in other countries. This is a 
great advantage to the community as a whole, 
and to bankers, wholesalers and creditors of 
all kinds who do business with the merchant. 
Few failures mean a great economic gain to 
the country. Millions of dollars are lost and 
wasted in failures in the United States every 
year. It is said that ninety-five per cent, of 
the business men in the United States fail at 
one time or another during their careers. 



THE NEW ERA 285 

This is not the case in Equaland. Even the 
younger men just starting in business and 
with only partial experience have in the 
auditing firm a guide and pilot that keeps 
them from the many by-paths that lead to 
failure and disaster, and puts them on the 
way to success. 

Likewise, this same system which requires 
all business to be conducted according to the 
best and most approved methods under the 
direction of a competent auditing firm, is a 
protection to the State, and is the means by 
which the economic system of the country is 
maintained. By means of it exact and reli- 
able information is furnished the District as 
to the earnings of each individual business 
man, as well as the wages paid and the num- 
ber of hours worked by each of his employees. 
In case the merchant is an applicant for an 
award, the exact condition of his business in 
every particular can be ascertained, from 
which can be determined to a fraction of a per 
cent, his measure of success. The auditing 
firm has a complete and accurate record of 



286 STATE SOCIALISM 

everything, — the amount of goods he pur- 
chased, the amount sold and the price, the 
amount on hand, the overhead expense, the 
amount of credits due, the amount of debts, 
from all of which items the profits are deter- 
mined. The merchant cannot pad his sales, 
or conceal his debts, or the true amount of 
his overhead expense. All sales must be in 
accordance with previously determined prices 
and the customer is the safeguard to see that 
the prices are correctly stated on the itemized 
bill of sale. All money received must be ac- 
counted for and properly applied either to 
the purchase of stock, overhead expense, or 
earnings. 

In the small store the cash register is the 
cashier. The amount of cash registered each 
day must correspond to the total of cash 
sales checks. No money can be taken from 
the cash drawer, either by the merchant or 
any of his employees, without properly ac- 
counting for it and charging it to expense ac- 
count. Otherwise, a balance cannot be made 
for the day's business. Neither can the mer- 



THE NEW ERA 287 

chant pay out of his bank account without 
accounting for the money, for the auditing 
firm keeps a record of this also. Nor can 
goods or merchandise be taken from the 
store either by the merchant or any of his 
employees without charging or accounting 
for them. The merchant is charged with the 
invoice price of his complete stock of goods. 
What is not sold must be in stock and if 
anything has been improperly taken or dis- 
posed of, the invoice at the end of the year 
will disclose it. 

It will thus be seen that, by the above 
methods, the auditing firm has a complete 
and exact knowledge of every detail of the 
merchant's business, the same as the audit- 
ing department has of each department in 
the big store, or in each one of a chain of 
stores. He is charged with and must ac- 
count for everything connected with his 
business, the amount of goods purchased, 
the amount sold, cash received, cash paid 
out. He must turn over to the account- 
ing firm a copy of every sales check for 



288 STATE SOCIALISM 

goods sold. Should one be lost or missing, 
the business for the day cannot be balanced. 
Likewise, he must furnish it with a copy of 
the record of money paid on expense ac- 
count, or his cash account either on hand or 
in the bank cannot be balanced. A system 
of this kind is like a machine. A record 
of every transaction in the business must be 
made and turned over to the auditing firm 
for the proper working of the machine. If 
one record is lost, missing, or not reported, 
no matter how small the item, it is like a 
cog dropping out of the machine. The ma- 
chine does not work properly, and a balance 
for the day, or month, or year, cannot be 
obtained. 

The auditing firm does the complete au- 
diting of the merchant's business and relieves 
him from all work of this character. It can 
do it at less expense than the merchant can 
do it himself. By means of adding ma- 
chines it quickly obtains a summary and 
balance of each day's business. The mer- 
chant's business is too small for him to own 



THE NEW ERA 289 

such a machine. The auditing firm keeps 
an accurate and systematic record of his 
credit accounts. It employs a collector who 
does this work for all the merchants under 
the firm. His accounts are thus collected 
quickly and better than he could do it him- 
self. Furthermore, the collector has the 
time to look after his bad accounts. The 
merchant has neither the time nor the dis- 
position, and he could not afibrd to employ 
a collector of his own. 

The accounting firm also acts as an infor- 
mation bureau on credits. It gives the mer- 
chant reliable information as to whom credit 
should be extended, and to what amount. 
He is in touch by telephone at all times 
with the firm and has devices for obtaining 
information without giving offense to the 
customer. 

Creditors pay their accounts either at the 
store, or at the office of the accounting firm. 
Such accounts as are not collected by the 
collector are generally paid direct to the ac- 
counting firm. 



290 STATE SOCIALISM 

The accounting firm also does the mer- 
chant's correspondence. Generally the mer- 
chant calls each day at the firm's office. He 
obtains such information as he wishes to 
know concerning his business and consults 
the firm concerning any details on which he 
desires advice. At this time he will likely 
dictate to a stenographer such correspond- 
ence he wishes to write. The whole is done 
within a short time and these matters are 
off his hands and taken care of for the day. 
His business is not large enough to afifbrd a 
stenographer, or even perhaps a typewriter 
of his own. If for any reason he has not 
the time for a personal call, he will commu- 
nicate with the firm by telephone, obtain by 
this means any information he desires, or 
dictate to the stenographer any letters he 
wishes to be written. 

In the larger cities and towns a still more 
extended use of the system has been made. 
Where there is a sufficient number of stores 
of the same kind, whether groceries, drugs, 
restaurants, etc., to employ the services of 



THE NEW ERA 291 

one accounting firm, the latter also acts as 
a buying agency. Goods or supplies can 
thereby be purchased in larger amounts, or 
in car-load lots, at less prices, by combining 
the orders for each kind of goods of all mer- 
chants. This plan overcomes one of the 
advantages of the big store, or chain of 
stores, — the buying of goods in large quan- 
tities at less prices. There are other uses of 
the plan, such as the same delivery system, 
the same drayage, a common warehouse for 
storing stock and a means of supplying each 
other when out. It will be seen that such a 
system of individual merchants is very little 
different from, and that it possesses almost 
as many economic advantages as, a chain of 
stores conducted by a single company. 

The system outlined above is used in all 
kinds of merchandising, no matter how 
large or how small the amount of business. 
For hotels and caf6s other systems are used 
designed to meet the conditions there arising, 
which are well known in other countries 
where they were first developed, and concern- 



292 STATE SOCIALISM 

ing which the reader can inform himself 
from any book on modern business methods. 
In those lines of business in which the 
sale is small such as restaurants, quick lunch 
counters, confectioneries, bakeries, barber 
shops, etc., quicker and more expeditious de- 
vices are used for receipting the customer and 
for ascertaining the sales of each waiter or 
clerk and the total sales for the day. In- 
stead of a blank sales check upon which the 
items of each sale are written, a sales check 
is used on which is printed different amounts, 
running from five to fifty cents, or whatever 
amounts suit the business. The amount of 
each sale is punched upon this sales check 
instead of written. If there is more than 
one purchase by the same customer, the 
highest amount punched is the amount to be 
paid. These checks are consecutively num- 
bered and in pads of from fifty to one hun- 
dred and fifty each. All checks must be ac- 
counted for to the auditing firm, first by the 
manager for the whole, and by each clerk or 
waiter for the checks in their custody. 



THE NEW ERA 293 

Still another check is used which is espe- 
cially adaptable to the smallest business, such 
as the small barber, or cobbler shop, news, 
candy, or fruit stand, etc. This check is a 
quick means of receipting the customer and 
an accurate means of ascertaining the re- 
ceipts for the day. Different amounts are 
printed on this check, the lowest amount be- 
ing at the bottom. A perforated line runs 
across the check so that the amount of each 
purchase can be easily torn off. From that 
part of the check remaining in the book the 
amount of each sale is ascertained, and from 
these the total of the day or week. These 
checks are in pads of fifty to one hundred 
and fifty, are consecutively numbered, and 
all must be accounted for. 

So far as the purchase of stock, tools, or 
supplies, and overhead expense is concerned, 
the same system used in the large stores ap- 
plies, for an accurate record must be kept of 
these in the smallest business as well as in 
the largest. The record, however, is much 
smaller, simpler, and easier to keep. 



294 



STATE SOCIALISM 



Still another device is that of stamp can- 
celation. In some districts and states this 
system is also used to cover receipts for small 
amounts. Stamps are obtained of the ac- 
counting firms who keep an accurate record 
of the amount furnished each citizen. In 
every transaction a stamp is torn from a 
sheet, or roll, and canceled. Small stamp 
canceling machines are used which quickly 
detach and cancel the stamp at the same 
operation. 

This system is both inexpensive and reli- 
able. The great postal systems of all coun- 
tries rely upon canceled stamps to cover mil- 
lions of receipts from all their branches. 
Millions of revenue are also collected by the 
same means. The same system is applicable 
to any business, especially the small business, 
the ^requirement being that a stamp be can- 
celed covering the amount of cash received 
in each transaction. 

Every one who conducts a business of any 
kind receipts for the money received by one 
of the above methods, — either a sales check, 



THE NEW ERA 295 

punched check, tear off check, or canceled 
stamp. The receipts are accounted and 
turned over to some accounting firm with 
which the business is connected. At the end 
of the month the citizen pays the amount of 
his earnings, less twenty per cent, for special 
needs, to the Sub-district office in which he 
resides, which is verified and certified to by 
the auditing firm. In return he receives the 
equal wage and other allotments and benefits 
herein set forth. All those citizens not en-* 
gaged in any business for themselves, such as 
workingmen, employees of all kinds, and 
farmers, deal directly with, and report and 
turn their earnings over to the Sub-district 
office in which they reside. 



CHAPTER XXV 
THE FAEMER AND THE NEW EEA 

The same system applies to farming and 
all allied occupations. The successful farmer 
must be a good business man as well as a 
good farmer. Lack of systematic business 
methods has been the cause of many a fail- 
ure. Landlords are also taken advantage of 
by tenants because they trust to honesty and 
there is a total absence of business methods 
between them. Trusting to honesty is a 
poor policy and has long ago been discarded 
in good business circles. 

In Equaland the business side of farming 
is transacted according to business methods. 
We have seen that each individual mer- 
chant or business man is charged with the 
net cost of all goods purchased during the 
year, and with their selling price ; that he 
must account for all goods purchased in 



THE FARMER 297 

sales or else have them in stock when the 
invoice is taken ; and that he must render 
a true account of his overhead expense. 

So each farmer is charged with the culti- 
vation of all the tillable land on the farm 
he occupies ; with maintaining his average 
earnings ; with producing a certain amount 
of crops each year ; with accounting at the 
end of the year for all products produced 
either in sales, or on hand to be disposed of 
later. If the average earnings of a farmer 
have been $1,000 per year and by reason 
thereof he has been given the use of $3,000 
in buildings and personal property, $1,000 
must be made each year or a rental charge 
paid covering the deficiency. And when- 
ever the earnings fall below the average the 
District's loss in soil value must be paid, ex- 
cept in cases of strictly unavoidable cause. 

All citizens, including farmers, must earn 
a certain amount each year in accordance 
with the value of the real and personal prop- 
erty of which they have the use for home 
purposes, or must pay a rental difference. 



298 STATE SOCIALISM 

But this does not apply to earnings in excess 
of $1,000 per year used for business purposes, 
or to farms received upon an award. If a 
farmer who has been earning $1,000 per year 
receives an award of a farm earning $1,500 
per year and on which there are $3,000 
worth of buildings, he is not charged with 
earning $1,500 per year, but $1,000 per year 
for five years, at the end of which time a new 
average is established which he must main- 
tain. One man should not be required to 
equal the average of another whose farm has 
been awarded him for the reason that the 
former occupant might have been an excep- 
tional man whom very few could equal on 
the same farm. And then a large part of 
his earnings might have been from stock, 
poultry, etc., in which he was unusually 
successful. Hence, each man is charged 
with maintaining his own average in case 
of award, but otherwise the amount of earn- 
ings must be in proportion to the value in 
the buildings and personal property. 

Each farmer is also charged with produc- 



THE FARMER 299 

ing a certain amount of crops each year. In 
those countries in which individual owner- 
ship obtains, the landowner can do as he 
pleases with the land. He can cultivate it 
poorly, indifferently, or not at all. The loss 
is his own and no one is interested except 
himself, his family and his creditors. But 
under a community system the District, or 
State, is financially interested in each piece 
of land. The land belongs to the District as 
a whole, and the use of each piece of land 
possesses a certain monetary value each sea- 
son, which should be realized in accordance 
with the season. But this is no more than 
every farmer owes himself no matter in 
what country or under what system he 
lives, — to realize in crops the monetary 
value of the use of the land occupied. The 
vast majority of farmers everywhere volun- 
tarily strive and endeavor to obtain a cer- 
tain amount of crops, to equal the average 
for the season, to do at least as well as the 
majority. 

So each farmer is charged, not with pro- 



300 STATE SOCIALISM 

ducing all of which his land is capable by 
the most intensive and improved methods 
of cultivation, — only a few are capable of 
doing this — but with equaling the average 
for the same kind and character of soil 
throughout the Sub-district. This is a re- 
quirement that nearly every farmer can 
meet, which the great majority are desirous 
of meeting, and it protects the State against 
the indifferent and inefficient. If the farmer 
exceeds the average he will be rewarded ac- 
cordingly. If he fall below the average he 
must pay the District its loss in soil value. 

This average is obtained at the end of the 
year from the amount of crops actually pro- 
duced. When the crops are planted, each 
farmer makes a record in a duplicating book 
issued to him for the purpose as to the date, 
kind of crops, and the number of acres 
planted. He retains one copy of this record 
and sends the other to the auditing office of 
the Sub-district, and thereupon becomes 
charged with producing the average crop as 
above explained. He also makes a duplicate 



THE FARMER 301 

record in his Crop Report Book each month 
of the condition of each crop as compared 
with the normal. Weather conditions and 
other causes that have damaged or retarded 
the growth, and the extent, or amount, are 
given ; also the number of labor hours per- 
formed. The monthly crop report made out 
by each farmer is presented for approval, or 
correction, to the crop inspector, or reporter, 
for the neighborhood before going to the Sub- 
district ofifice. There is such an inspector in 
each neighborhood of from one to two square 
miles in extent according to the density of 
population and size of the farms. They are 
appointed by the Sub-district and are paid 
for their services. Being reliable and com- 
petent men, through practice and experience, 
they become skilled in judging true crop con- 
ditions. They make such correction of the 
farmers^ report as is necessary to make it con- 
form to the facts. If a certain crop should 
be below the average from any avoidable 
cause, such as neglect, poor cultivation, poor 
management, etc., it is so reported. Like- 



302 STATE SOCIALISM 

wise, if any crop is below the average from 
unavoidable cause it is so reported ; also the 
extent and cause, so that the farmer may ob- 
tain credit for the labor hours lost. 

The Sub-district office also makes observa- 
tions and tests of its own. All favorable and 
unfavorable conditions, such as the time of 
planting, condition of ground, amount of 
rainfall, and the effect of each on the differ- 
ent crops, also damage from any cause, such 
as drought, excessive rains, frosts, injury by 
insect, wind-storm, or from any other cause 
are carefully noted and recorded. It is also 
known at the Sub-district office, from records 
and scientific tests, how much each piece of 
land produces and the number of labor 
hours required to bring any crop to a certain 
stage. 

From the reports of the farmers, approved 
and corrected by the crop inspectors, and 
from its own observations and tests, crop 
bulletins are issued monthly by each Sub- 
district office. These crop bulletins are re- 
markable for their accuracy as to true crop 



THE FARMER 303 

conditions. They are not much different 
from the crop reports issued in different 
countries, except instead of being based upon 
general estimates, they are based upon reli- 
able and accurate information as to the con- 
dition of every crop. 

These bulletins give each farmer notice 
while the crops are growing as to what the 
average is, as well as the number of labor 
hours being performed. When it is remem- 
bered that each farmer must equal the aver- 
age in crops and perform the average yearly 
labor hours, it is important that he have in- 
formation concerning both. 

The final reports are not made out and 
sent in until after the crops have been har- 
vested. In order to ascertain on the part of 
the District the amount of crops actually 
produced, and to be fair and just to the 
farmer and not estimate and charge him 
with more than he has produced, tests are 
made while the crop is being harvested to 
ascertain by measurement the amount pro- 
duced. These tests are easily and quickly 



304 STATE SOCIALISM 

made. For instance, a field has a certain 
number of rows of the same length. A row 
is selected, the crop removed and measured. 
From this the amount of crop for the whole 
field is computed. After a sufficient number 
of crops have been tested to cover the differ- 
ent kinds of soil, the different conditions of 
the various crops in the same soil, a separate 
report is made by the crop inspector for each 
crop in his territory. Each farmer receives 
a duplicate of the report on his crop. If any 
find that they are charged too much, a test is 
made to ascertain the true amount. 

It is not necessary to so test those crops 
which are harvested or prepared for market 
by machinery. There are many machines, 
such as thrashers, clover hullers, corn busk- 
ers, etc., which measure the crops handled by 
them. The machine owners are required to 
report to each Sub-district office the results of 
each crop handled by them within its terri- 
tory. More crops are handled by machinery 
in Equaland than in any other country, and 
machine measurements are an accurate 



THE FARMER 305 

means of ascertaining the amount of crops 
produced. 

It will thus be seen that the Sub-district 
office obtains from the final reports of the 
machine men and the crop reporters reliable 
information as to how much crop each farmer 
has produced. The farmer is now charged 
with and must account for, either in sales 
or otherwise, the full amount of crops. If 
he should hold a crop for some time, a cer- 
tain allowance will be made for shrinkage, if 
any ; also an allowance will be made if there 
has been any loss or destruction by unavoid- 
able or unpreventable cause. He may also 
consume what is needed for table use. But 
with these exceptions, all products must be 
accounted for ; he is so charged, the same as 
the merchant is charged with accounting for 
his complete stock of goods. 

We have also seen that the merchant is 
charged with a certain selling price fixed by 
himself So the farmer is charged with ob- 
taining the market price at the time of the 
sale. If he should have a damaged or infe- 



306 STATE SOCIALISM 

rior product which does not command the 
market price, the Sub-district office has 
notice thereof in the reports of the crop in- 
spector. Each farmer uses his own judgment 
as to when and where he will market his 
crops. But he must account for all products 
sold and at a certain price. 

It is difficult for him to dispose of any- 
thing and not account for it, because an 
itemized record, no matter how large or small 
the transaction, must be made of each sale at 
the time it takes place. For this purpose a 
triplicating sales book is used similar to the 
one used by the merchant and his clerks. 
One copy of each record goes to the pur- 
chaser, one to the auditing office of the Sub- 
district. The third copy remains in the book 
for the farmer^s convenience and protection. 
The Sub-district office supply the sales books, 
the checks are consecutively numbered, can- 
not be changed without detection, and each 
one must be accounted for. 

An additional safeguard to the District is 
that when payment is made by check, which 



THE FARMER 307 

is generally the case, the check is made pay- 
able to the Sub-district in which the payee 
resides, per himself. Small cash sales are 
sufficiently protected by the sales check, and 
gardeners, dairymen, etc., use the punched 
check, the tear-off check, tickets, or stamps to 
save time. 

At the end of the month the farmer ac- 
counts to the auditing office of the Sub- 
district by presenting copies of all sales 
checks used, together with money checks and 
cash covering and balancing the sales checks. 
He receives credit for products sold and labor 
hours in accordance therewith. At the same 
time he has for his own reference and study 
a complete and accurate record as to how 
well he has succeeded as a whole and with 
each crop. A study and comparison of this 
record with his cost or expense record is in- 
structive and profitable. And in case of 
error on the part of the auditing office as to 
the amount of his sales, or dispute with any 
purchaser, he has an itemized record of each 
transaction. 



308 STATE SOCIALISM 

Can the farmer sell anything surrepti- 
tiously and not render an account thereof? 
Under the system in use, it is difficult for 
him to do so. He could not possibly so dis- 
pose of only a small part of his products. 
When it is remembered that each farmer 
must maintain the annual earnings of his 
farm, produce or equal the average crop for 
the year, obtain credit for a definite number 
of labor hours each year, it is seen that he 
must produce and sell enough product to 
meet all these requirements before he could 
sell anything surreptitiously. Futhermore, 
the Sub-district office has a record as to how 
much crop he has produced. All his neigh- 
bors are interested in seeing that the District 
receive full returns ; so are all persons with 
whom he deals and sells. The sales check 
protects and safeguards the District the same 
as it protects the corporation, or big store, 
against its employees. All citizens with 
whom he deals require the sales check to be 
given not only because it is the law of the 
land, but also because all are interested in the 



THE FARMER 309 

full proceeds going to the District. Lastly, 
there is every inducement to the farmer to 
make his earnings as large as possible on 
account of the increased income and allot- 
ment he would receive therefrom. Further- 
more, an award of a superior and more val- 
uable farm is often dependent upon a few 
dollars more earnings. 



CHAPTER XXVI 

MODEEN BUSINESS METHODS AND AGEI- 
CULTUEAL OCCUPATIONS 

The farmer is also charged with conserva- 
tion of the soil. The land must not be 
robbed of its fertility and exhausted to make 
quick returns. No good farmer does this for 
thereby he only injures his source of liveli- 
hood and income. In fact, in Equaland the 
consequences to himself are greater than else- 
where and the soil is generally better con- 
served than in some countries where private 
ownership obtains. In the first place, each 
farmer must both keep up his annual earn- 
ings and come up to the average of crops 
produced in the Sub-district each year. The 
farmer who abuses his land is soon in a 
position where he cannot do this. Rental 
charges attach and the District's loss in soil 
value must be paid. And in cases of ex- 
haustion a special charge is made covering 



MODERN BUSINESS METHODS 311 

the damage done the land. These charges 
reduce his income and soon drive him to a 
less valuable farm, or out of the occupation 
altogether. 

In the second place, a farmer who has a 
charge against him of abuse of land is not 
eligible to an award. He cannot obtain an 
award of a better farm except by excelling 
others both as to the amount of earnings 
and the condition in which he has kept his 
land. It would not be just to his competi- 
tors in case of an award to allow him to 
reap the benefits of quick and larger returns 
for a short time by exhaustion of the land. 
If a piece of land is abused it is always 
known by the crop inspector and the neigh- 
bors. It is easy to prove the fact and it may 
be depended upon that neighbors will see to 
it that such a farmer obtains no unjust ad- 
vantage over them in this respect. 

The farmer is also charged, the same as 
the individual business man, firm, or cor- 
poration, with rendering a true account of 
his expenses. It is simply a matter of good 



312 STATE SOCIALISM 

business for the farmer, as well as the mer- 
chant, to keep an accurate expense account, 
and in this country it is necessary because 
the amount of income, allotment, as well as 
awards, are dependent upon net earnings. 

There are two methods of paying expenses, 
one known as the charge, and the other as 
the pay system. If the pay system is used the 
farmer makes use of a certain amount of his 
allotment, or property use, to which he is 
entitled, for this purpose. Thus, suppose a 
farmer wishes to get ahead of his expenses 
by putting them upon a cash basis. His 
gross earnings are $1,500 to |1,600 per year. 
His expenses for labor, seed, fertilizer and 
other items for which no allowance is made, 
is from $200 to $300 per year. On the first 
$1,000 of his earnings he is entitled to the 
property use of $3,000. We will suppose 
that he has to his credit $200 to $300 of 
this which he has not made use of. He ob- 
tains an order for the amount from the Sub- 
district office and deposits the same in a 
bank. The order, as well as the bank de- 



MODERN BUSINESS METHODS 313 

posit, is designated, " Expense Fund." It 
cannot be drawn out, or checked upon for 
his personal use, because it is capital which 
belongs to the District but of which he is 
given the use for this purpose and which, 
if not used this way, would be invested in 
buildings or otherwise, and thus preserved 
for the benefit of the District. The only 
checks good against it outside those to a 
regular business concern are those payable to 
a Sub-district per the individual who has 
performed the labor or whatever it may be, 
and designated, " Expense." If for labor, the 
check will also designate the number of 
hours performed. It cannot be cashed by 
the person to whom delivered, but must be 
turned into the Sub-district office in which 
the payee resides in order for him to obtain 
credit for its amount in earnings and labor 
hours. 

The farmer also obtains orders from the 
Sub-district office and deposits in bank, the 
allowance due him each year for repairs to 
buildings, and for maintenance of ma- 



314 STATE SOCIALISM 

chinery. Each of these funds are desig- 
nated both on the order and bank book, are 
kept separate from each other, and can only 
be used and checked upon as above set forth, 
for the purpose for which each is intended. 

Every time a check is issued upon any 
one of these funds, an itemized record of 
the transaction for which the money is paid 
is made in triplicate in the farmer's " Ex- 
pense Account Book." One copy goes to 
the payee, one to the Sub-district ofl&ce, 
which must be signed by the payee, and one 
is retained by the payer. At the end of 
each month or quarter, the farmer turns 
over to the Sub-district office all copies going 
to it, and they become his vouchers for ex- 
penditures on the different funds. 

At the end of the year the capital provided 
for labor and kindred expenses is exhausted. 
He has used his capital, but it is in his gross 
earnings. He is therefore entitled to its re- 
payment out of his gross earnings to be so 
used another year, and so on, as long as he de- 
sires it. 



MODERN BUSINESS METHODS 315 

If the expense fund is exhausted before the 
end of the year, money is borrowed from a 
bank, especially for the handling and har- 
vesting of crops which must be paid for in 
cash. The bank has a lien on the earnings 
which can be enforced whenever necessary. 
Or, if there is no expense fund, the charge 
method is used. Instead of payment in 
money, an order is drawn on the farmer's 
earnings by means of which so much of his 
earnings are transferred to the credit of the 
one performing the labor. Each order is 
drawn in triplicate, one copy of which is re- 
tained by the drawer ; the other two are de- 
livered to the party to whom the obligation 
is due. He retains one of these, and presents 
the other to the Sub-district office, whereupon 
it becomes a charge against the person who 
issued it. All three parties interested thus 
have a copy of the transaction. In this 
manner the Sub-district office obtains copies 
of all obligations the farmer incurs relating 
to expense. They are properly credited to 
the different persons to whom due and the 



316 



STATE SOCIALISM 



whole is charged against and taken from his 
earnings. 

If the farmer is engaged in any line which 
requires the investment of capital, such as 
poultry, dairying, stock raising, gardening, or 
any specialty in which there is large and fre- 
quent expense, or numerous sales, such busi- 
ness can hardly be transacted except upon a 
money basis. Capital for these specialties is 
obtained and expenses accounted for as above 
explained. 

As already stated, none of these funds can 
be checked upon personally. Only those 
checks are honored which are payable to a 
Sub-district and go to make up the earnings 
of the individual to whom issued. For this 
reason there is no opportunity for collusion. 
The individual never does receive the money, 
or any part of it, but he is paid the equal 
wage by the District. Thus, the money once 
paid out is disposed of for good and is beyond 
the control of both parties, payor and payee. 
It goes into a common fund to be redistrib- 
uted to all. For this reason the Sub-district 



MODERN BUSINESS METHODS 317 

can trust each farmer to see that he obtains 
value received for all monies paid out of the 
different funds. 

The farmer is not required to render any 
account of products consumed by himself and 
family, such as milk, butter, vegetables, 
fruits, and nuts. Every farm has its garden, 
orchard, and poultry yard. So do most of 
the city residences. The State encourages all 
citizens to produce as much of their own liv- 
ing as possible. The labor hours being short, 
most citizens have the time and are desirous 
of obtaining the table and health benefits to 
be derived therefrom. City lots are large for 
this purpose and the cities are not as com- 
pactly and closely built as in other countries. 
So the farmer does not have much advantage 
over the city man in this respect. 

What the farmer consumes himself, the 
same as the city man, must be produced out- 
side the number of labor hours required for 
the year. He receives credit for labor hours 
only on products sold, and not on products 
consumed. Those occupying small places, 



318 STATE SOCIALISM 

suJBficient only to produce what they consume, 
must perform the full number of labor hours 
in other work, the pay for which goes to the 
Sub-district, to entitle them to the equal wage 
and other benefits paid by the District. 

Each farmer is allowed to use a certain 
portion of his products in accordance with 
the size of the family to feed and maintain 
the poultry and stock consumed. But if, in 
addition to this, he is feeding and maintain- 
ing poultry, or stock, for market purposes, he 
keeps a record of the amount of products so 
consumed. It is only good business for every 
farmer to keep such a record in order to as- 
certain and study the amount of expenses and 
profits. The farmer charges himself with and 
accounts to the Sub-district office for the prod- 
ucts so consumed and obtains credit for 
labor hours accordingly. When he sells any 
of his stock, poultry or dairy products, he 
uses the system before described and obtains 
credit for so much earnings and for additional 
labor hours for handling and care. 

An inventory is taken semi-annually by a 



MODERN BUSINESS METHODS 319 

special officer, similar to the tax assessor in 
America, of the amount of poultry, stock, 
etc., possessed by each farmer. Each is 
charged with an accounting in accordance 
with this inventory in sales at market prices. 
Losses by disease or other unavoidable cause 
are reported to and adjusted by the crop in- 
spector. 



CHAPTER XXVII 

EXAMPLES OF BUSINESS TEANSAOTIONS 

As the ultimate title of all land is in the 
District, subject to the individual ownership 
and possession of its citizens, so the ultimate 
title to all capital and personal property 
used for business purposes is in the District, 
subject to the use and possession of its citi- 
zens. The title of the District in its capital 
is preserved in all transactions concerning it 
and follows it into whatever business it may 
be invested. This is necessary because the 
citizen is the trustee of the District, and in 
order that the capital or investment may re- 
vert to the District at the citizen's death to 
be awarded other citizens. 

In order to illustrate how the District pro- 
tects its capital, let us suppose a certain citi- 
zen, John Doe, has earned and is entitled to 
the use of $10,000 capital for business pur- 



BUSINESS TRANSACTIONS 321 

poses. He obtains a check or order for this 
amount from the District Auditor, which 
check or order is designated, ** District No. 
21, State of , Trust Fund." He de- 
posits the order in his bank, the deposit be- 
ing designated the same way on the certifi- 
cate, or the bank book. The bank makes 
out a duplicate deposit slip, one copy of 
which is sent to the Sub-district auditor who 
thereby becomes notified as to where the 
money is deposited. This fund can only be 
checked upon for business or investment pur- 
poses and no personal checks against it are 
honored. 

If corporation stock is purchased a check 
is drawn as follows : 



^*Pay to the order of District No. 21, State 
of , per Henry Jones, Ten Thousand Dol- 
lars. For 100 shares General Electric Stock. 

(Signed) District No. 21, State of , 

Per John Doe.'' 



The stock certificate is worded something 
like the following : 



322 STATE SOCIALISM 

^* This is to certify that District No. 21, State 

of , is the owner, per Henry Jones, of 100 

shares of stock, par value $100 each, in the Gen- 
eral Electric Company. 

The General Electric Company, 
By Wm. Smith, Treasurer. 
Countersigned, John G. White, President. '^ 

The stock is transferred as follows : 

^* Title to the within stock is hereby trans- 
ferred to District No. 21, State of , per John 

Doe. Consideration, $10,000. 

District No. 21, State of , 

Per Henry Jones.'' 



If Henry Jones should have been the 
resident of another District or State, the 
check would have been drawn to the District 
of which he was a resident. 

Each time a check is drawn upon a trust 
fund in making a purchase, an itemized rec- 
ord of the transaction for which the money 
is paid is made in triplicate. One copy is 
retained by the payer, the second copy goes 
to the payee, and the third copy, being 
signed by both the payer and payee, accom- 
panies the check to the bank, and is then 



BUSINESS TRANSACTIONS 323 

sent by the bank to the auditor's office of 
the Sub-district in which the payer resides. 
By this means the Sub-district ascertains ex- 
actly for what the money has been used. It 
keeps a record of the stock purchased for the 
District by John Doe, as trustee, and requires 
him to account for his earnings therefrom. 

When John Doe sells the stock he makes 
out a triplicate bill of sale ; one copy goes to 
the purchaser, one is retained by himself, 
and the third copy goes to the Sub-district 
auditor. Title does not vest in the purchaser 
until the Sub-district office receives its copy 
of the bill of sale. The check received in 
payment of the stock is deposited in bank, 
duplicate slips being made by the bank, one 
of which is sent to the Sub-district office. 

Thus John Doe can invest his capital in 
the stocks or bonds of corporations located 
anywhere, his checks not good or honored 
unless accompanied by an itemized state- 
ment signed by the seller. He may sell to 
whom and whenever he pleases. The Sub- 
district office receives notice of every trans- 



324 STATE SOCIALISM 

action, knows what is bought, sold, and 
where the money is deposited. All this is 
accomplished with very little additional time 
on the part of the original parties, — no more 
than that required by a saleslady in writing 
the particulars of the sale of a piece of calico. 
John Doe has absolute freedom of action, 
the only requirement is that he obtain the 
market price at the time of the sale. In the 
smaller cities there are Boards of Trade, and 
in the larger cities Stock Exchanges, the 
secretaries of which give their approval as 
to market prices. In those cities in which 
there are regular Stock Exchanges citizens 
who are large dealers in stocks and bonds 
make their transactions through auditing 
firms which make a specialty of this line of 
business, the auditing firm making daily 
and monthly reports to the Sub-district in 
which the citizen resides. Those who buy 
on a small scale or only occasionally transact 
such business directly through the auditor 
of the Sub-district as above explained. 

The same method is used if the capital 



BUSINESS TRANSACTIONS 325 

should be used for business purposes. John 
Doe draws a check transferring the capital 
to whatever business it is invested. If it 
should be his own business, a check is 
drawn payable to the order of *' John Doe, 
Groceries," " John Doe, Drugs," ** John Doe, 
Hardware," or whatever the business may 
be. An itemized statement in triplicate is 
made at the time. One copy accompanies 
the check and goes to the Sub-district au- 
ditor who is thereby informed that John 
Doe has transferred so much capital to his 
business. Another copy is sent to the au- 
diting firm of the business through which 
John Doe accounts for his earnings in the 
business. The same method is used if the 
capital should be invested with another firm, 
or in the purchase of a business. 

If a business is purchased, a similar check 
is drawn, and the business is transferred as 
follows : 

** Know All Men, by these presents, that I, the 
undersigned, Henry Jones, in trust for District 
No. 21, State of , for and in consideration 



326 STATE SOCIALISM 

of the sum of $10,000 do hereby transfer, sell 
and convey all my right, title and interest in a 
certain drug store located at the corner of Sixth 

Avenue and Tenth Street in the City of to 

John Doe in trust for District No. 21, State 

of . 

District No. 21, State of , 

Per Henry Jones." 

If a farm is purchased the Bill of Sale, or 
Deed, is worded as follows : 

. . . *'for and in consideration of the 
sum of $5,000 I hereby transfer, sell and con- 
vey all my interest in and right of possession to 
farm No. 142, Sub-district No. 18, District No. 
21, State of , to John Doe, in trust for Dis- 
trict No. 21, State of ,'' 

Signed as above. 

What is sold in this case is the value 
in the buildings and other improvements, 
which carries with it the right to possession 
of the land. The land itself is not subject 
to sale. In this instance the occupant of 
the farm has been earning about $2,000 per 
year from which earnings he has obtained, 
by using a portion of his surplus earnings 
for this purpose, $5,000 worth of buildings 



BUSINESS TRANSACTIONS 327 

and improvements. In case he sells, he is 
entitled to the use of this much value, or 
whatever he can obtain on sale, in other 
ways, either in purchasing another farm, or 
for business or home purposes in case he de- 
sires to change his occupation. 

The Trust Fund can be used only for busi- 
ness or investment purposes, and cannot be 
used personally, and no personal checks 
upon it are honored. A person who is an | 

agent, employee, or trustee would have no 
right to use trust funds personally. This is t 

the law of all countries. 

In like manner, if John Doe is not occupy- 
ing as valuable a house as he is entitled to, if I 
he wishes to enlarge or improve his present 
house, or build new, the same method is 
used. Let us suppose he wishes to make 
$2,000 worth of improvements to his present 
home. He draws a check and transfers 
$2,000 to John Doe, " House Fund," with an 
itemized statement, a copy of which is sent 
to the Sub-district auditor, who makes a 
record of the fact. All checks on the fund in 



328 



STATE SOCIALISM 



paying for the improvement are designated, 
" House Fund/' until the whole is paid out. 
The Sub-district auditor is fully informed of 
each transaction by means of the itemized 
statements which accompany the checks. 

So if John Doe has a certain amount of 
capital he is entitled to use in personal prop- 
erty, he transfers or deposits the amount in 
his personal property fund. Most citizens 
have four bank accounts, or funds. First, a 
personal fund into which is deposited the 
equal wage and 20% special needs, and upon 
which checks are drawn for living expenses, 
designated, " Personal." Second, the house 
or home fund in which is deposited any 
money to be used for building, improvements, 
etc., and also the yearly repair fund of 5% of 
the earnings. Third, the personal property 
fund in which is deposited funds for buying 
household furniture, tools, machinery, per- 
sonal effects, etc., and the h% of earn- 
ings allowed for replacing and maintenance. 
Fourth, the trustee fund in which is deposited 
capital to be used for business or investment 



BUSINESS THANSACTIONS 329 

purposes. There is also an Expense Fund, 
used by farmers. These funds are designated 
Personal, House, Chattel, Trust, and Expense. 
Banks issue deposit books for each fund, 
also checks to correspond upon which is 
printed the name of the fund. This makes 
it an easy matter for the citizen to keep the 
fund separate by having a check upon which 
the fund is plainly designated. While there 
are five funds, only one is much used, the first 
or Personal. The House and Chattel funds 
are used only occasionally and are generally 
small. Many citizens leave these funds ac- 
cumulate at the Sub-district office until 
needed. The Trust Fund is also used but 
comparatively few times, because it is gen- 
erally transferred to a business where it be- 
comes a part of the business under an audit- 
ing firm. For these reasons the extra funds, 
or accounts, do not require much additional 
auditing on the part of the banks. 

Each time a check is drawn upon any one 
of the funds, except the Personal, an itemized 
statement is made in triplicate of the trans- 



330 



STATE SOCIALISM 



action for which the money is paid. One 
copy is retained by the payer, one is given to 
the payee, and the third copy, being first 
signed by the payee, goes to the Sub-district 
office. At the end of each quarter or year, 
with the exception of the *' trust" checks 
which are reported at once, the citizen turns 
over to the Sub-district office the copies that 
go to it and they become his vouchers for 
expenditures on the different funds. 



CHAPTER XXVIII 

THE SYSTEM NOT CUMBEESOME, NOE 
EXPENSIVE 

The foregoing system, which is nothing 
but modern business methods enlarged and 
applied to all occupations and pursuits, 
covers every transaction of the citizen as 
trustee or employee of the District. It has 
been applied to every business, however 
small ; to the professional man, capitalist, 
farmer, employee, as well as the common 
laborer. It has made possible a more equita- 
ble distribution of the means of subsistence 
between the rich and the poor. 

The system is not cumbersome and does 
not require too much time. In the large 
Department Store there is sometimes as high 
as fifty thousand sales a day. Yet an item- 
ized record is made of each sale and of every 
transaction that takes place between the dif- 
ferent departments and the different em- 



332 



STATE SOCIALISM 



ployees in handling such a vast volume of 
business. Too much time is not taken by 
the employees in making these records as in 
any way to incumber the business, or to in- 
terfere with its success. The farmer's sales, 
which are generally in bulk, are few as com- 
pared with those of the retail store, and the 
record necessary in each instance is made in 
a moment's time. So the transactions of the 
capitalist, the. receipt for services by the pro- 
fessional man, the employee, or laborer, are 
few as compared with those of the average 
retail clerk. 

The working of the system does not re- 
quire any more intelligence or education 
than has been heretofore possessed by the 
average farmer, or workingman. The new 
sales clerk takes her position behind the 
counter in the big store and, possessing only 
common intelligence and education, quickly 
learns, and is able to perform her part in the 
working of the system. All that is required 
of her, so far as the system is concerned, is 
the ability to write the items and add the 



THE SYSTEM NOT CUMBERSOME 333 

totals of each sale. In Equaland, where edu- 
cation is general and compulsory, every citi- 
zen is able to add and write. But it would 
not be absolutely necessary that the farmer 
or laborer be able to write to meet the re- 
quirements of this system. The inability to 
write is a great inconvenience, but that one 
can be successful, accumulate wealth and 
transact considerable business without this 
ability has been demonstrated in different 
countries. Those who cannot write must 
call upon and trust to others to do it for 
them. So the farmer who does not possess 
this art would have to trust to the purchaser, 
in case of a sale, to make the sale record for 
him, and the laborer would have to trust to 
his employer to make the bill of sale for his 
labor. If it should happen that both parties 
of a transaction could not write, a third per- 
son would have to be called upon to make 
the record. 

If the farmer would not be able to make 
out his monthly crop report, the crop in- 
spector would do it for him. In some Amer- 



334 STATE SOCIALISM 

ican States each farmer is required to report 
to the tax assessor not only all items of per- 
sonal property and their value, but also the 
amount of each kind of product produced 
by him during the year. Hence, the reports 
required in Equaland are no more difiEicult, 
intricate, or extensive than what is required 
in America in making tax returns, and ne- 
cessitate no more intelligence, or education 
than what is now possessed by the average 
American farmer. 

The system is not too expensive. The ex- 
pense has not deterred business men and cor- 
porations from making use of modern busi- 
ness methods. In fact the system prevents 
losses and leaks, and saves far more than it 
costs. Each District, being like a corporation, 
needs the same protection from losses and 
leaks upon the part of its dishonest citizens 
as the business corporation, in order that the 
wealth produced and created each year may 
be preserved entire for the benefit of all. 
Hence, the system saves the people as a 
whole far more than it costs. 



THE SYSTEM NOT CUMBERSOME 335 

The successful working of the system re- 
quires no more honesty than has been here- 
tofore possessed by mankind. Its object and 
purpose are to obtain from each citizen a true 
account of his earnings in order that a more 
just distribution of the means of subsistence 
can be made in accordance with need. One 
of the objects in designing and developing 
modern business methods was to protect the 
employer against dishonest employees, to re- 
quire each employee to render a true and full 
account of all business transacted by him. 
That this object has been attained in a pre- 
eminent degree is well known to all those 
who are familiar with the practical workings 
of modern business methods. The economic 
system of Equaland being nothing more than 
this same system enlarged and applied to 
every business and occupation, requires no 
more honesty than has been heretofore pos- 
sessed by the average employee of the big 
store or corporation, and protects the State 
against each citizen the same as the big store or 
corporation is protected against its employees. 



336 STATE SOCIALISM 

The majority of mankind is honest; at 
least sufficiently so as to render true ac- 
counts when any system is used to detect 
dishonesty. The above system is greatly 
beneficial and highly favored by the honest 
majority, — that is, by the people generally. 
By means of it an exact record is obtained 
of the earnings of each citizen. It furnishes 
unquestioned proof as to exactly how much 
each citizen is entitled to from the District ; 
the amount of income for living expenses, 
of allotment or use of capital in a home or 
business, retirement benefits, as well as who 
is entitled to advancement or promotion in 
case of an award. 



CHAPTER XXIX 

CHANGES NECESSAEY FOE THE BEGIN- 
NING OF THE NEW OEDEE 

The question is frequently raised by so- 
journers in Equaland as to whether its 
economic system is adaptable to other coun- 
tries, and if adaptable, what changes would 
be required in its adoption. While State 
Socialism may work well in a new country 
which has comparatively few large cities, is 
it applicable in the largest cities of other 
countries containing several million popu- 
lation ? 

A District, it has been observed, is similar 
to a corporation. Its citizens are its em- 
ployees, accounting to it for their earnings 
and in return are paid an equal wage and 
other benefits. There are railroad systems or 
corporations in the United States having 
150,000 employees. Counting four people 
to each employee, to allow for women 



338 STATE SOCIALISM 

and children, would make a population of 
600,000. The Railroad Company transacts 
a vast amount of business daily and monthly 
in handling its passenger and freight traffic, 
and expends millions of dollars annually in 
maintaining its right of way and rolling 
stock. The earnings of all employees go to 
the company and in return the company 
pays each employee a certain monthly or 
semi-monthly wage. If a single railroad 
company can handle successfully 150,000 
employees, not only receiving their earnings 
but controlling all their activities and pay- 
ing its employees monthly, so could a Dis- 
trict containing the same number of em- 
ployees which only receives the earnings of 
its employees but does not control their 
activities. 

There are in the Postal Service of the 
United States 295,461 employees, according 
to the figures for May 1, 1916. It is operated 
as a single system or a unit. Allowing four 
people for each, these employees represent a 
population of 1,181,844. Should the demands 



CHANGES NECESSARY 339 

of the service require it the number of em- 
ployees might be doubled or trebled, repre- 
senting a population of from two to three 
million. The earnings of the postal em- 
ployees are accounted to the Post-Office De- 
partment and in return they are paid for 
their services monthly and in some cases 
semi-monthly. If instead of being scattered 
throughout the United States, the postal em- 
ployees were located in a single District, or 
city, all within close personal touch and 
within easy telephone communication with 
each other ; if, instead of all being engaged 
in the same occupation, they were engaged in 
different occupations, free and independent 
of each other and of the District so far as 
their occupations are concerned, would not 
the District be able to handle this number 
of employees as successfully as the Post- 
Office Department, obtain from each a true 
account of his earnings and in return pay 
each a monthly wage and other benefits ? 

We have in the postal system of the 
United States a demonstration of the fact 



340 STATE SOCIALISM 

that a District or city of a million population 
could be successfully handled and operated 
under a system of full and complete State 
Socialism. In the leading countries of the 
world there are but comparatively few cities 
containing more than a million inhabitants. 
In the United States there are but three such 
cities, while a large portion of the inhabitants 
live in smaller cities and rural counties con- 
taining from 25,000 to 50,000 population, and 
in which under State Socialism there would 
be from 6,000 to 15,000 employees. The 
average District in the United States would 
contain about 50,000 population. 

A District should embrace an entire city, 
and in case the earnings of a certain District 
should be much in excess of the average for 
the State, such excess should be accounted for 
to the State. Such a provision might be 
advisable in case there were a number of 
wealthy citizens or millionaires residing in 
the same District whose earnings would swell 
the average beyond that of the rest of the 
State. In all the larger European and Ameri- 



CHANGES NECESSARY 341 

can cities there are slum sections in which 
congregate the poor. By making a District 
co-extensive with a city, the slums or poor 
sections, where the earnings are low, can be 
taken care of by the rest of the city where the 
earnings are high. The inhabitants of the 
slums would not earn as much as they re- 
ceive. They would generally receive their 
rent free, and in some instances more. The 
object and purpose of State Socialism is to 
banish poverty and effect a more equitable 
distribution of the necessities and con- 
veniences of life. 

As to whether the largest cities of the 
world, such as London, New York, Berlin 
and Paris, could be operated as a unit, let us 
take for an illustration a certain railway sys- 
tem. There are in the service of the Penn- 
sylvania Railroad System, East and West of 
Pittsburgh, approximately 225,000 employees. 
All the accounting for the entire System is 
taken care of by two accounting depart- 
ments, one for the Lines East of Pittsburgh 
and one for the Lines West of Pittsburgh, each 



342 STATE SOCIALISM 

accounting department being in charge of a 
comptroller. These two departments handle 
all the statements of earnings and expenses 
for the entire Pennsylvania System, and the 
employees are paid twice a month through 
the Treasury Departments of the Lines East 
and Lines West of Pittsburgh. 

We have, then, two accounting depart- 
ments for 225,000 employees, or for 900,000 
people, counting those dependent upon them. 
This would make one accounting depart- 
ment for 450,000 people, one-fourth of whom 
would be employees, entitled to the equal 
wage. On this basis, if we had a city of 
4,500,000, we would need ten accounting 
departments, and in like proportion for 
whatever the size of the city. 

It would be no more difficult for an ac- 
counting department at the head of a city 
than for an accounting department at the 
head of a Railroad Company, covering the 
same number of employees. The only thing 
necessary to be uniform throughout the city 
is the equal wage. The other factors are 



CHANGES NECESSARY 343 

fixed and are run and operated in divisions, 
or sections, a Sub-district being such a sec- 
tioii. If we had a city of 4,500,000 under 
ten accounting departments, all that would 
be necessary would be for the comptrollers to 
get together to determine what is to be the 
equal monthly wage for the entire city, and 
make the necessary equalizations among the 
different departments to cover the same. 

In any city, a change from the present 
economic system to that of State Socialism 
could be effected peacefully and quietly 
without any disturbance to business or 
industry. All citizens would continue in 
the same trades and occupations and in the 
same positions they now hold. All business 
and all industries would be conducted in the 
same manner and by the same methods as at 
present. State Socialism does not in any 
manner attempt to change the methods of 
production. The difference would be that 
every business would have to employ the 
services of an auditing firm and be con- 
ducted according to modern business meth- 



344 STATE SOCIALISM 

ods. This would only be good business 
policy for every business not now so con- 
ducted. At the end of each month all 
citizens would account and pay over their 
earnings to the auditor's office of the ward or 
township in which they reside and receive 
the equal wage and other benefits to which 
they are entitled. 

No changes would be necessary as to the 
control and possession of real and personal 
property held by citizens, except properties 
rented for residential purposes. The individ- 
ual ownership of property for resident pur- 
poses is not in harmony with the housing sys- 
tem, under which the county or city itself 
undertakes to furnish each citizen a home in 
accordance with earnings. Hence, individual 
ownership in this class of properties would 
cease, the properties would be turned over to 
the city and the former owners paid their 
rental value by the city as long as they live. 
At their death the properties would belong 
to the city absolutely. In the case of farm 
properties occupied by tenants, the buildings 



CHANGES NECESSARY 345 

would go to the county to be administered 
under the housing system, the former owner 
being paid their rental value during his life- 
time. The latter would also have control 
of the land, for the use of which the tenant 
would have to pay him rent or a share of 
the earnings. There would be no change as 
to the control of business properties occupied 
by tenants. Owners of this class of prop- 
erties would continue to exercise the rights 
of ownership and control the same as before. 
With the above exceptions, then, all citizens 
would retain possession and control of what- 
ever property, business, or other rights they 
possessed at the time of the change. Those 
citizens possessing more property than they 
are entitled to in accordance with earnings 
would be charged the rental value on the 
difference, and those in possession of less 
than they are entitled to would be paid the 
rental value on the difference. The only 
other difference would be that at the death 
of the citizen his property or business, instead 
of descending to his children, would revert 



346 STATE SOCIALISM 

to the county or city to be awarded other 
citizens upon a competitive basis. 

This would necessitate the repeal of the 
inheritance laws, as now in effect, in differ- 
ent countries of the world. In the United 
States, the inheritance laws, embracing the 
Statutes of Descent and Distribution, and of. 
Wills, could be repealed by mere act of the 
State legislatures, for in many of the States 
they do not rest upon any inherent or Con- 
stitutional right, but only upon statutory, 
or legislative enactments. Congress has the 
power to repeal the inheritance laws for 
Alaska and to substitute therefor a law pro- 
viding for the reversion of property to the 
State at the death of the possessor, and to 
pass other laws embracing the principles of 
State Socialism. 

But whether the inheritance laws rest 
upon mere statutory or upon Constitutional 
right, as may be the case in some European 
countries, it is well known that the Consti- 
tutional law of any country can be changed, 
and is changed, whenever a strong majority 



CHANGES NECESSARY 347 

of the people demand it. In England, for 
instance, the unwritten Constitutional law is 
more flexible and subject to change than that 
of the United States. If the people of Eng- 
land, or any other European country, desire 
State Socialism the inheritance laws can be 
changed and a system of laws embracing 
State Socialism passed and put into effect. 
There would not necessarily need to be any 
change in the political form of government 
of any country adopting State Socialism, as 
the laws embracing State Socialism would 
be subsidiary to, and operated under, the 
general political laws governing the country. 
The necessary laws having been passed 
and put into operation, each citizen would 
be given the use of a certain amount of his 
earnings for home purposes ; also a certain 
amount for household furniture, tools, ma- 
chinery, and business purposes. A certain 
limit would be fixed beyond which the citi- 
zen^s earnings would be free for business or 
investment purposes. As to how much prop- 
erty would be allowed for home purposes 



348 STATE SOCIALISM 

would depend upon the number of families 
and an appraisement at their true value of 
all houses, apartment, and farm buildings in 
a city or county. As to where the limit 
would be fixed would depend upon the 
average annual earnings of all the earners 
in the city or county. 

All working and earning citizens would 
become the agents, trustees, or employees of 
the State. But this would not be a great 
change for the great majority of people, for 
most people are in the trustee or employee 
class now. All teachers in the public schools 
and colleges are agents or trustees of the State 
in the conduct of the educational system. 
Officers of the army and navy, all admirals 
and generals are mere trustees or servants of 
the State, to whom is given very full author- 
ity, who render services of a high quality, 
for which they are paid a wage. The same 
is true of the judiciary, and of all national, 
state, city, and county officials. They are 
but servants or agents of the State, being 
paid a wage for their services. So in the 



CHANGES NECESSARY 349 

business world, the officers and managers of 
all the large companies and corporations en- 
gaged in the many lines of business, the 
officers and managers of railroad companies, 
insurance companies, — in fact, all people 
who work for a salary or wage are in this 
class. Then consider the immense number 
of lesser employees now in this class, the 
large number of employees of the corpora- 
tions, companies and individual firms en- 
gaged in every line of business ; the large 
number of common workers of all kinds, 
workers in factories, in mines, and in every 
kind of work for which a wage is paid. All 
railroad employees from the president of the 
road down to the section hand, as well as all 
common soldiers and sailors are in the em- 
ployee class. They are agents, trustees, or 
servants to do the particular work they are 
employed to do. 

This class comprises a very large part of 
the people, from the common laborer up to 
men in the highest positions, railroad presi- 
dents and managers, college professors and 



350 STATE SOCIALISM 

presidents, judges, generals, admirals, the 
active managers and directors of great cor- 
porations and business enterprises of all 
kinds. Since so large a number of our citi- 
zens now belong to this class, and render 
the State the highest, the best, and most effi- 
cient service of which they are capable, it 
would not be a very great departure from 
present conditions to require that all citizens 
be of this class. It would be far better for 
society as a whole. And is there any reason 
to doubt that the business man, manufac- 
turer, stockholder, and farmer would render 
any less efficient service to the State if paid 
a wage and recompensed by the State in pro- 
portion to ability and earnings, than the col- 
lege president, judge, general or admiral? 

What, then, would be accomplished by the 
change to State Socialism ? By making all 
citizens trustees or agents of the State ab- 
solute ownership of property would be abol- 
ished. The American Constitution abolished 
nobility and made all citizens equal before 
the law. But in the place of the nobility 



CHANGES NECESSARY 351 

there has developed in this country a prop- 
erty holding class. Great fortunes have been 
accumulated and perpetuated by reason of 
absolute and unconditional ownership of 
property. Their owners possess greater 
power, live in greater luxury, and exact a 
greater toll from society than the nobility 
ever did. It is becoming more and more dif- 
ficult for those possessing nothing to acquire 
property holdings. Children born of parents 
owning property have advantages over those 
who possess none. These can be overcome 
only by exceptional ability and energy, which 
the great majority do not possess. By the 
abolishment of absolute and unconditional 
ownership of property, all would be given 
an equal opportunity. The position any 
citizen would be able to take in society would 
depend upon his individual merit and abil- 
ity. This, then, is what would be accom- 
plished, economic equality, an attainment 
which would be as great an advance in the 
world's progress as was the achievement of 
political equality. 



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